Reported about 18 hours ago
The Swiss National Bank is considering a historic rate cut to zero, sparking concerns over its impact on the banking sector. This move, aimed at combating deflation and strengthening the economy amidst a strong franc, could complicate banks' operations by eliminating the interest that attracts deposits while also compressing margins on loans. Analysts warn that a sustained zero interest rate could severely challenge Swiss banks, forcing them to adapt their strategies in an already tough economic environment.
Source: YAHOO