ECB mulls doubling bank reserve requirements to cut interest bill

The ECB is considering doubling the proportion ​of cash lenders must keep as reserve in an unremunerated account, six sources told Reuters, which ‌would cut the central bank’s own interest bill and mitigate the side effects of its inflation fight.

The potential increase, which is being debated by European Central Bank policymakers, would raise minimum reserve requirements to 2 per cent from 1 per cent of banks’ customer deposits and some other forms ​of funding, the sources said....