The excellent Spontaneous Finance blog explains in technical terms why banks will not start lending due to negative rates from a micro-economic, i.e. bank perspective. For Austrians, general statements about the economy need to be funded on microeconomic insights (methodological individualism). Macroeconomic aggregates have no meaning, since individual actors cannot observe them and hence do not act on them. (Exceptions may be some financial market participants, other than value investors. But then again they usually do not produce things in the real economy, although they can certainly influence outcomes in the short run). In that respect this post sums it up nicely.