Jyske Bank became the first Danish lender to introduce negative interest rates on deposits as a further sign of how the finance industry is expecting ultra-loose monetary policy to persist.

Denmark’s third-largest lender said on Tuesday it would make customers holding more than DKr7.5m in deposits pay for them. The interest rate would be agreed individually but the default would be minus 0.6 per cent per year.

“As Jyske Bank has a significant and increasing deposit surplus from personal clients and hence incurs large expenses in relation to these, Jyske Bank introduces a maximum of DKr7.5m on personal clients’ demand deposits with an interest rate of 0 per year,” said chief executive Anders Dam.

Denmark has had sub-zero interest rates for longer than any other country with banks scrambling to adapt to the new reality. Danish lenders have offered negative interest rates on mortgages since 2015 and Jyske last week became the first to offer a 10-year home loan for minus 0.5 per cent.

Swiss banks UBS and Credit Suisse have already signalled plans to levy negative interest rates on their wealthiest clients.

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