Myriad uncertainties, ranging from the future growth of China, weakness in oil prices and whether coupons on CoCos can be paid, may have sparked the volatility seen in European bank securities this month. But the overriding concern appears to be over how banks will cope with negative interest rates, which look likely to persist for longer than many ever expected. "The bottom line is the impact is negative, no doubt about that," said Richard Barnes, senior director at ratings agency Standard & Poor's, based on the experience of banks in Japan, Denmark, Switzerland and Sweden, all of which now have negative rates.
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