British banking major HSBC will charge banking clients to hold some European currencies as interest-rate remain low the region, according to Bloomberg.
HSBC will impose negative interest rates on the Swiss franc, Danish krone, Swedish krona and euro accounts of banking institutions, the bank’s Hong Kong-based spokesman Gareth Hewett told the publication via an e-mail.
However, retail and corporate will not be affected and HSBC has no plans to charge negative interest rates on those accounts, Hewett added.
The decision is likely to affect the bank’s customers in Germany, Hong Kong and the UK.
From 1 June 2015, HSBC will charge its banking client’s futures settlement accounts with a negative interest rate on their balances.
While, current and deposit accounts of the customers will be charged from 1 August 2015, Bloomberg reported citing a Hong Kong Economic Journal report.
Interest rates will be based on London deposit rates.