ZURICH, March 22 UBS will impose a
charge on wealthy clients for cash they hold in euros, a
reaction to the negative interest rate environment in the euro
The Swiss bank, the world's largest wealth manager, will
introduce from May an annual fee of 0.6 percent on accounts with
more than 1 million euros ($1.1 mln).
The charge will apply to total amounts held by individual
customers and be calculated on a daily basis.
It comes in response to the ultra-low or negative European
Central Bank rates, in the wake of the financial crisis, which
have eaten into banks' margins.
UBS currently imposes an individual deposit charge for large
account balances held in Swiss francs by corporate,
institutional and certain very wealthy clients, as it deals with
negative interest rates charged by the Swiss National Bank.
"UBS will apply an individual deposit charge on large euro
cash balances for European clients," a UBS spokesman said,
confirming an earlier report by Bloomberg.
"This charge reflects the increasing costs seen across the
industry of re-investing cash from deposits in money and capital
markets, the continued extraordinarily low and negative interest
rates in the euro area and increased liquidity regulations."
($1 = 0.9281 euros)
(Reporting by John Revill; Editing by Susan Fenton)