Japanese banks gain as state fund cuts deposit levy
The low rate reflects the recovery of the local financial system but savings may not spur lending
Tokyo
THE state-run fund that bailed out Japan's banks with taxpayer money from the end of the 1990s is now so flush with cash that it is cutting what it charges lenders to protect savers.
The Deposit Insurance Corp of Japan lowered to 4.2 basis points from 8.4 basis points what it charges banks to insure deposits and then uses as a reserve to rescue failed lenders. The cut to the lowest rate since early 1996 reflects the recovery of the local financial system, and will boost banks' profits, though the savings probably won't spur lending, according to BNP Paribas and Keefe Bruyette & Woods Inc.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Barclays cuts jobs in energy transition team it only just built
Great Eastern shares jump 39% as OCBC mounts S$1.4 billion privatisation bid at S$25.60 per share
China's central bank vows to support economic recovery
Ping An sells US$50 million of HSBC shares after vote against CEO
Manulife profit beats on growth in Asia, wealth management
Hot stock: UOI surges to over 6-month high amid heavy trading