The Dutch Minister of Finance, Wopke Hoekstra, does not want to place an outright ban on negative interest for savings, he said in response to parliamentary questions from the CDA and PvdA. Such a ban would be a “very significant intervention in the market”, and could have negative repercussions.
Belgium already has such a ban
Recently, Belgium introduced such a ban. This prompted the political parties CDA and PvdA to ask questions about a ban on negative interest rates on savings in the Netherlands. Hoekstra responded that not only would the ban be a drastic intervention in the market, but also it could also make monetary policy less effective and, worst-case scenario, harm financial stability.
Hoekstra will continue to talk to banks about the consequences of having a negative interest rate. In these discussions, he wants to “address the dilemma of whether or not to intervene by means of a ban”. The Minister stresses that implementing a negative interest rate on savings is also a drastic step for banks, and is not yet on the cards for consumers’ saving accounts.