Negative policy rates have not harmed the profitability of commercial banks in Sweden and Denmark, argues an occasional paper published by the European Central Bank.
In The profitability of banks in a context of negative monetary policy rates: the cases of Sweden and Denmark, Christophe Madaschi and Irene Pablos Nuevo say that banks in both Sweden and Denmark have seen profitability and cost efficiency rise.
Swedish banks have benefited from a rise in operating incomes, the authors say. These
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