"The impact we've had from corporate has already bled through and we are anticipating the final bleed ... this year. And the rest is very, very, very stable," he said. "Now people are probably more worried about making sure that 's there and safe" rather than seeking higher rates by moving their current account, he said. Orcel's comments echoed those of Intesa Sanpaolo Finance Chief Stefano Del Punta who on Tuesday told the same conference that Intesa was not repricing retail deposits, but offered instead money market products. Like UniCredit, Intesa differentiates between retail and corporate clients and it is paying the Euribor rate to its main large corporate clients after charging them a negative 50 basis points on their deposits in past years. (Reporting by Valentina Za, editing Federico Maccioni, Kirsten Donovan)
(Recasts with comments on deposits)
By Valentina Za
MILAN, March 15 (Reuters) - UniCredit is not
under pressure to raise the interest rates it pays on retail
deposits, which account for about 60% of its deposit base and
are "very sticky", Chief Executive Andrea Orcel said on
Wednesday.
Addressing a Morgan Stanley banking conference in London,
Orcel generally dismissed concerns about European banks after
the failures of U.S. peers Silicon Valley Bank and Signature
Bank.
"Most banks have liquidity ratios that are off the charts,"
he said, adding that the European Central Bank would only be
forced to intervene in case of a "dramatic dislocation" which at
present there is no reason to fear.
A stable deposit base is widely seen as one of the bulwarks
protecting European banks from the issues faced by the two
failed U.S. lenders.
Large European banks, Orcel said, "have been holding the
line" on 'deposit betas', meaning the percentage of interest
rate rises that are passed on to customers as the ECB increases
the cost of credit.
In answer to a question on the fallout from the SVB crisis,
Orcel said the bank faced "absolutely no pressure" to shift its
stance regarding retail deposits.
It has, however, already passed higher rates on to corporate
clients and will continue to do so this year.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.