More than a year ago, the Bundesbank was already drawing attention to the economic disadvantages and risks associated with a trade dispute in an edition of its Monthly Report.6 Simulations exercises conducted as part of a global economic model show that, by introducing new tariffs, the United States runs the risk of damaging not least its own economy.
All of these things would have weighed on banking sector profitability. Moreover, while acknowledging that banks face a charge because of the negative rates policy, internal data show that this burden is alleviated by the benefits gained in wholesale funding markets.