Negative Zinsen

The conception of interest used to be settled. In recent years, the phenomenon of negative interest rates insecures depositors and is a controversial issue. Hence, it is a surprise that this matter is not being dealt with adequately. Especially from a legal perspective, negative interest rates result in numerous problems. Therefore, this work examines the concept of interest from a legal and economic point of view and evaluates negative interest rates on the basis of interdisciplinary models and definitions. Based on these findings, the basic rate of interest by § 247 BGB is being discussed, which is the gateway of negative interest rates to the civil law. Subsequently, the paper deals with the impacts on statutory interest rates, specially the different reactions of § 288 I and II BGB, and provides an analysis of both legal and contractual interest rates resting upon negative benchmarks. Following this, the occurrence of negative interest on deposits is also discussed.