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LONDON / AP
Royal Bank of Scotland says it will charge some corporate customers for accepting their deposits — the first U.K. bank to impose so-called negative interest rates after the Bank of England slashed borrowing costs to spur investment.
RBS, bailed out by taxpayers during the financial crisis, says negative interest will apply only to the overnight rate for a limited number of institutions that are required to have money on deposit to complete futures trades.
RBS said it “will now be passing the cost of holding such deposits onto a limited number of our institutional clients.”
The Bank of England this month slashed its benchmark rate to a record-low 0.25 percent as part of a package of stimulus measures to boost confidence following Britain’s vote to leave the European Union.