September 19, 2019 / 8:09 AM / a month ago

SNB cuts banks a break on sight deposits by lifting threshold

ZURICH, Sept 19 (Reuters) - The Swiss National Bank eased the burden on banks on Thursday by raising the exemption threshold for negative interest rates on sight deposits to 25 times minimum reserves from Nov.1, versus the previous threshold of 20 times.

Banks must pay negative interest on the portion of their sight deposits that exceeds the exemption threshold.

The SNB kept its policy rate and the negative rate it charges on commercial banks' sight deposits at -0.75%, declining to match the European Central Bank and the U.S. Federal Reserve in cutting interest rates to tackle a global economic slowdown.

Reporting by Angelika Gruber, writing by Silke Koltrowitz

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