Germany: one in five companies is burdened by the ECB's policy

Almost one in five German companies has been faced with charges for cash deposits at its bank as a result of the European Central Bank's negative interest rates, the Ifo Financial Institute said today.
Only 8% of all companies eventually accept the charge, with most others scaling through negotiations or choosing another bank, according to the Ifo survey with a sample of 4,000 companies. Alternatively, businesses use cash to repay debt or to invest.
The findings, though likely to cause disappointment among German entrepreneurs, partly justify the ECB's policy, which is to strengthen investment and facilitate the deleveraging process.
"In particular, the latest response (investment) is interesting from a macro viewpoint because it has not only a monetary impact but also an impact on the real economy," said Christina Heidz, one of the authors of the study.