The European banking crisis is spreading rapidly. There are now concerns in Italy and in Portugal as well. The ECB cannot even understand why people would not want to keep their money in banks with negative rates. They are simply incapable of managing the economy. The ECB is bringing Europe to the brink of a widespread banking collapse. Once this crisis becomes a contagion, there will be no stopping it.
Low rates will NOT encourage borrowing when banks have too much bad debt to begin with. The negative rates are sending savers to hoard cash outside of banks. It is amazing, but the ECB is in complete denial and unable to see that it must reverse its policy to prevent disaster.