Is this lawful? Zero Hedge thinks it isn't. But the bank has not refused to allow the money to be withdrawn. It has simply restricted the form in which the money can be taken. Since electronic money and physical cash are fully fungible, it is hard to see how this restriction can be regarded as unlawful without undermining the value of electronic money - which would be highly destabilising in a modern monetary economy.
And this effectively means that the zero lower bound does not exist.....
Read the whole article on Forbes.
The ECB's policy mix is poison for banks - FT
The strange world of negative interest rates