EFTA Document EFTA01388533

Reserve Exemption (Soniya Sandeesh) • This is exactly what is done in Switzerland, Japan and Denmark where they also have negative deposit rates. • It enables you to help banks without a) tightening policy and increasing EURIBOR b) looking like you are giving them free money. • In hiking deposit rate you are benefiting some banks but harming those using the TLRO. Counter productive. With a reserve exemption, everyone benefits. SEE this report: Unlike the ECB, other Central Banks (eg SNB