The Bank of Cyprus announced on Tuesday that following the recent increases as well as the expected new ones of the main interest rates of the European Central Bank, it will end the liquidity charge (deposits) to large corporate depositors as of December 1st.
"As a result of the recent and in view of the expected increases in interest rates prevailing in the international markets, Bank of Cyprus Public Company Ltd announces that it will remove the application of the Liquidity Cost charge to the credit balances of legal entities in deposits in Euro, with effect from 01/12 /2022", says the Bank of Cyprus in today's announcement and adds that information letters will be sent to all affected customers.
It is recalled that in July the ECB made the first increase in its key interest rates after 11 years. In particular, the deposit acceptance rate rose to 0% from 0,50%, a level it had been at since September 2019, while negative deposit acceptance rates started in June 2014. In essence, banks were paying the ECB to deposit their their liquidity.
Analysts estimate that in its next session, the day after tomorrow Thursday, the ECB Board is expected to increase its key interest rates by at least 50 basis points.
KYPE