They get positive expected real interest from loans they give, but pay negative real interest on deposits they receive.
If a bank buys a government bond that’s “giving a loan” and I understand that to give negative interest in certain cases.
They get positive expected real interest from loans they give, but pay negative real interest on deposits they receive.
If a bank buys a government bond that’s “giving a loan” and I understand that to give negative interest in certain cases.