(MENAFN- The Peninsula) Credit Suisse said yesterday it planned to start charging institutional and large corporate clients for Swiss franc accounts following a move by the Swiss National Bank to introduce negative interest rates.
The Swiss central bank announced in December that it would charge banks for franc deposits from January 22, in a bid to stem a flight to the safe-haven currency driven by concerns over the eurozone and Russia's deepening crisis.
Last week, the central bank said it would increase the interest charge by a further 0.5 percentage points to -0.75 percent.
"In view of current developments, commission on credit balances is being introduced in the case of institutional clients and large corporate clients," Credit Suisse spokeswoman Daniela Haesler said in an emailed statement, adding clients were being informed individually about the measure.
She declined to comment on the size of the interest charge and when it would be introduced. She added, however, that Credit Suisse currently had no plans to levy a negative interest rate on savings accounts.
The bank, along with local rival UBS, introduced a form of negative interest rate on the franc accounts of financial institutions in 2012 to deter rivals from hoarding the safe-haven unit.
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