Bank interest rate worsened further as negative interest rate progressed 18:40 on September 18
Regarding the Bank of Japan's negative interest rate policy, Ritsio Hatajima, chairman of the National Bank Association, expressed concern that if the short-term interest rate was further reduced at a press conference, the earnings of the local bank could worsen further.
The BOJ has continued to implement a negative interest rate policy for short-term interest rates as one of the large-scale monetary easing measures, but the management environment has become harsh for local banks due to the shrinking margins of loans at low interest rates.
Mr. Kajishima, president of the National Bank Association, said at a regular press conference on the 18th that “In spite of the extremely low interest rate situation that continues for a long period of time, not only the interest income but also the original function of mediating funds will be demonstrated. But I have concerns. "
In addition, when the BOJ further reduced short-term interest rates as an additional monetary easing measure, it expressed concern that local bank earnings could be further worsened by stating that “worries and concerns will become even stronger”. Said, “I would like to ask for an appropriate response by conducting a multifaceted analysis of the balance between policy effects and side effects.”
On the other hand, in order to make up for the worsening of profits, some companies have set up a fee to maintain accounts and require depositors to pay.
Mr. Takashima said, “It should be considered as a business strategy for each bank, not necessarily linked to monetary policy.”