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ChristianKl comments on Open Thread, January 4-10, 2016 - Less Wrong Discussion
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Aren't the big banks publically traded and expected to grow by stock market analysts? How does that work when they get negative interest rates?
Banks have a variety of ways of making money besides collecting interest on deposits they make.
They get positive expected real interest from loans they give, but pay negative real interest on deposits they receive.
If a bank buys a government bond that's "giving a loan" and I understand that to give negative interest in certain cases.