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Japan's mega banks likely to flag tough year as negative rates depress loan income

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SUBDUED: A pedestrian walking past signboards of MUFJ, Mizuho Bank and Sumitomo Mitsui Banking Corp in Tokyo . The BOJ's January decision to introduce negative rates has added pressure on banks to compete for borrowers with even lower lending rates.

Tokyo

JAPAN'S three biggest banks are likely to flag lacklustre earnings for the current business year when they release forecasts this month, with loan income depressed by an economic stimulus policy that charges lenders to store money at the central bank.

Mitsubishi UFJ Financial