17 May 2021

Negative Interest Rate report

The report is a summary of responses received from our survey of licensed financial services firms in September 2020 regarding their readiness for negative interest rates.  While the industry generally self-reports as being operationally ready for a negative interest rate environment, some issues noted by respondents may require workarounds such as manual processes or limitations of affected product offerings.  Issues were noted in areas such as systems, contracts, interest rate hedges, and option pricing models.  We recommend

  1. that all entities review the report and consider if the various issues raised might affect their businesses or their clients and
  2. that any delays in implementation of negative interest rates be used to continue preparations.

Download Negative Interest Rate report PDF.