“Pandora’s Box Is Open”: Why Japan May Have Started A ‘Silent Bank Run’

Saturday, January 30, 2016
By Paul Martin

by Tyler Durden
ZeroHedge.com
01/30/2016

“… if the negative interest rate continues for longer or goes deeper, commercial banks may have to set negative interest rates on deposits, which would expand not only the tax on commercial banks, but also on depositors (households and companies). This could lead to a ‘silent bank run’ via a shift of deposits to cash (banknotes), which in turn damages the sound banking system by enlarging the leakage of funds from the credit creation mechanism in the banking system.”

The Rest…HERE

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