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Central banks are taking all possible actions to stimulate the country's economic situation. However, it is important to remember that maintaining negative interest rates for too long may have negative consequences. They may disturb the stability of financial markets. Effects of negative interest rates We can distinguish several consequences related to the establishment of negative interest rates that affect various interest groups.
  
These include: For banks Negative interest rates are a tool rarely used by institutions because, as a rule, they contradict generally accepted rules. The lack of profits for banking institutions in the long run will discourage phone number list them from granting loans, which will lead to another slowdown in economic processes. For households and companies The lack of profitability in granting loans will force banks to look for other ways to obtain income.



This will of course, affect bank customers by increasing the costs of maintaining bank accounts, higher commissions for handling payment transactions or ATM withdrawals or currency exchange. Moreover in such conditions, it becomes unfavorable to keep assets on deposits. This forces you to e.g. shares , which always involves some risk. Most people may fall into the so-called banking panic, i.e. mass withdrawal of cash from bank accounts and storing it in one's home. Disturbance of exchange rates Central banks, focusing their activities mainly on stimulating the economy, can forget about the risk of sudden exchange rate fluctuations.