“When I predicted at the beginning of December that the imminent fall of the Euribor would also lead to a decline in deposit rates, the worst of the two predictions came true, that is, that the large commercial banks operating in Estonia began to cut deposit rates. At the same time, the Euribor level will remain unchanged for the time being, and although expectations for its long-term decline are reasonable, there is no certainty when that moment will come”, commented the head of Bigbank Estonia.
“Of course the big banks are behaving exactly as a company with great market power is to be feared: two years ago they were the last to offer interest on term deposits, and now they are the first to cut depositors’ incomes,” Pechter comments and underlines that the contracts already concluded are still valid and no one can unilaterally change their profitability.
2024-01-08 08:50:41
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