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MS: Reserve remuneration move relatively small

ECB

From Morgan Stanley on minimum reserves remuneration: "The remuneration on minimum reserves was changed from the deposit facility rate to 0%. This concerns around €157bn (as of 21 July). The overall impact on banks and monetary policy transmission is relatively small, but the move signals that the ECB is thinking about the remuneration of items on the liability side of its balance sheet. NCB's and the ECB's profits should be positively affected by the change."

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