European Central Bank (ECB) Executive Board member Benoit Coeure said on Wednesday that the central bank monitored the impact of negative rates.

"We are monitoring it on a regular basis and we are studying carefully the schemes used in other jurisdictions to mitigate possible adverse consequences for the bank lending channel," he said.

Coeure pointed out that many banks could handle negative rates as they were "able to more than offset declining interest revenues with higher lending volumes, lower interest expenses, lower risk provisioning and capital gains".

He noted the Eurozone's economy continued to recover.