The ECB has proposed doubling the minimum reserve ratio from 1% to 2%, primarily to reduce its own interest-income bill (estimated ~€4 billion annual saving for the ECB system). The German banking lobby has formally opposed the proposal. A decision is expected in autumn 2026.
If enacted, neobanks that hold significant excess liquidity at the ECB — particularly Trade Republic, which passes through the ECB deposit facility rate directly to customers — would earn less on those reserves. The mechanism: reserve balances earn 0% under ECB rules (minimum reserves are remunerated at 0%), while excess reserves earn the deposit facility rate. Doubling the reserve requirement shifts more of a bank’s holdings into the zero-rate bucket, reducing average yield on central bank deposits.
The practical implication for EU neobank customers is straightforward: if this proposal passes, the best neobank savings rates in Europe could face downward pressure, even if the ECB’s policy rate holds steady. Trade Republic’s 2.25% DE / 3.04% ES rate, which tracks the ECB deposit facility rate minus a spread, is the most directly exposed to this mechanism among the neobanks we cover.
Watch for the autumn 2026 decision date. If the reserve ratio increase is confirmed, expect neobanks to update their rate pass-through disclosures within 30-60 days of announcement.
Source: https://www.ecb.europa.eu/