Tumbling Interest Rates in Europe Leaves Some Banks Owing Money on Loans to Borrowers

Tumbling interest rates in Europe have put some banks in an inconceivable position: owing money on loans to borrowers.

At least one Spanish bank, Bankinter SA, the country’s seventh-largest lender by market value, has been paying some customers interest on mortgages by deducting that amount from the principal the borrower owes.

Patricia Kowsmann & Jeannette Neumann | WSJ

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