Danish bank Jyske Bank will charge deposits to wealthy clients

COPENHAGEN (Reuters) – The Danish bank Jyske (JYSK.CO) will start charging their deposits to wealthy individuals instead of paying interest, announced Tuesday less than two weeks after the launch of the world's first negative interest mortgage.

Jyske Bank, Denmark's second-largest lender, announced the introduction of a negative interest rate of 0.6% for customers depositing more than 7.5 million Danish kroner ($ 1.1 million) .

"The environment of negative interest rate that affects the Danish market since the spring of 2012, which was only interrupted in 2014, now seems to be of a rather permanent character," he said. Jyske CEO, Anders Dam, in a statement.

"Market expectations indicate that the environment of negative interest rates will last for several years," added Dam.

The Nordic country was among the first to introduce negative rates in 2012. Earlier this month, Jyske was the first to offer a negative rate on a home loan, paying its customers 0.5% to borrow money. Money for 10 years.

These developments reflect the prospects of a global recession, prompting central banks to attempt to revive the economy by taking measures such as reducing lending rates.

The largest Danish lender Danske Bank (DANSKE.CO) does not intend to introduce negative interest rates on deposits, although the Swiss UBS (UBSG.S) stated that it would charge a negative rate of 0.75% to wealthy clients depositing more than 2 million Swiss francs ($ 2 million) with its Swiss bank.

Last month, Denmark became the first developed economy for the global fall in bond yields this year to record negative returns on all its government bonds.