ECB stimulate financial markets, not banks

The four largest central banks held important meetings on interest rate policy within a week. The ECB and the Bank of Japan signaled that they have reached maximum levels of incentives now. Bank of England and the Federal Reserve kept interest rates unchanged as bankers in the United States risked not to disturb the delicate balance of the financial markets with withdrawal of stimulus.


What are the negative interest?

Negative Interest on commercial bank reserves at the central bank that exceed regulatory requirements amount of minimum reserves. In the US, where interest rates are not negative, commercial banks receive interest payments on reserves. In Eurozone banks must pay because behave more money than necessary. These reserves are increasing and from "quantitative easing" by buying bonds from the ECB. Banks face more interest expense along with the reduction in margins. This explains why bank stocks fell last year. The ECB create money that does not go directly lending and kill bank profits. This policy is likely to continue for a long time, judging by comments from ECB President Mario Draghi.