Corporations deleverage and invest when charged negative interest rates on bank deposits

Analysis - November 2020 - No. 24

Authors Abildgren, Kim; Kuchler, Andreas
Subject Monetary-policy transmission; Economic activity and employment
Type Analysis
Year 2020
Published 19 November 2020
Many corporations are now being charged negative interest rates on their bank deposits. These corporations change banks and deleverage to a greater extent than other corporations. They also increase their investment in new capital equipment and create more new jobs.