BOSTON, Oct 17 (Reuters) - BNY Mellon Corp, the world’s largest custody bank, said on Friday it began charging clients 0.20 percent on their euro-denominated deposits.
BNY Mellon initiated the charge on Oct. 1, reflecting a recent move by the European Central Bank to charge 20 basis points on deposits in hopes of persuading banks to lend more money to businesses and consumers.
BNY Mellon reported $221.7 billion in average deposits at the end of September. And the bank said 15 percent of that amount was in euro-denominated deposit liabilities.
Banks typically pay customers for their deposits, but that amount has been paltry amid an environment of prolonged, rock-bottom interest rates. The ECB’s charge on deposits is designed to spur economic activity. (Reporting By Tim McLaughlin; Editing by Chizu Nomiyama)