Thus, banks focused on retail business, among them many cooperative banks, could be especially hurt by the negative interest rate policy. How so? The crux of the matter lies in the coincidence of two circumstances: the reluctance of households to pay to banks for depositing their money, and the importance of this type of funding for banks.
roperly managed, and in conjunction with steps to address the sources of the crisis, foreign liquidity assistance does not lead to increased inflation, higher interest rates, and an excessive depreciation of the domestic currency. Instead, it gives the government international reserves which can then be used to stabilize the value of the domestic currency and support domestic financial markets and institutions.