Europe’s Negative Rates ‘Do Not Work’ for Banks: HSBC CEO

The video discusses the European economy's struggle with negative interest rates and the transition from Mario Draghi to Christine Lagarde. It highlights the challenges European banks face compared to U.S. banks, which benefited from fiscal stimulus. HSBC and UBS are focusing on cost reductions, with HSBC leaning into its Asian business due to higher yields and profitability challenges in Europe.

What is one of the main reasons European banks are not fond of negative interest rates?

• They increase the banks' profits.

• They complicate monetary policy.

• They reduce the banks' ability to make money.

• They lead to higher inflation.

Who took over the leadership of the European Central Bank from Mario Draghi?

• Jean-Claude Trichet

• Angela Merkel

• Janet Yellen

• Christine Lagarde

Which two banks were mentioned as discussing cost cuts due to economic struggles?

• HSBC and UBS

• Deutsche Bank and Barclays

• Santander and ING

• BNP Paribas and Credit Suisse

Where does HSBC have the majority of its business operations?

• Europe

• North America

• Asia

• Africa

What strategy is HSBC considering for its less profitable businesses?

• Merging them with other businesses

• Expanding them

• Investing more in them

• Exiting them