Negative Rates From Two Perspectives by Alexander Marinov

A featured article of our January 2020 edition of PRMIA's Intelligent Risk quarterly newsletter


Banks and Pensions funds each serve a very vital role in the financial system:

Banks – intermediate between borrowers and savers, while generating income from the spread between what they charge on loans and the interest they pay to incentivize people to keep their money in the bank

Pension funds – provide deferred income for retirement in exchange for regular payments during a person’s working years

Historically both types of institutions have been able to function successfully due to traditionally healthy interest rate levels. However, the financial environment has changed quite dramatically in a number of ways since the Global Financial Crisis (GFC) of 2008/09.


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Intelligent Risk is PRMIA's quarterly publication, bringing all PRMIA members free access to knowledge and information about risk management for financial institutions as well as current information on PRMIA chapters, committees, academic partners, news and events.

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