The Survival Strategies of Japanese Financial Institutions during the Recession (1)

 On January 17, negative interest rates were imposed on some of the checking deposits held by Mitsubishi UFJ Bank, one of Japan's four largest megabanks. Except in 2016, when the negative interest rate system was first introduced, it was the first time in six years that negative interest rates were applied to large banks. Just six months later, on August 17, negative interest rates were imposed on some of Mizuho Bank's checking accounts, which are also one of the four megabanks.

Meanwhile, in June, the investment of a large financial group in securities firms was a hot topic. Mitsubishi UFJ Financial Group (FG), the parent company of Mitsubishi UFJ Bank, announced that it would acquire Capital Nomura Securities (CNS), a Thai securities subsidiary of Nomura Holdings. Nomura Holdings is the parent company of Nomura Securities, Japan's largest securities firm. Mitsubishi UFJ Group will invest up to 5.5 billion baht (about 21.2 billion yen) through Ayutthaya Bank under the group. Mitsui Sumitomo, Japan's second-largest financial group after Mitsubishi UFJ Group, announced a 10-percent capital tie-up for SBI, an Internet brokerage firm.

Nomura Securities, which sold its Thai 광명셔츠룸 securities subsidiary to Mitsubishi UFJ Group, announced on July 8 that it had agreed to a comprehensive partnership with local bank Fukui Bank in financial product brokerage business. On August 12, Tokyo Marine & Fire Insurance announced that it would start selling insurance at Amazon Japan's Internet shopping mall. It plans to expand its products from earthquake insurance to accident insurance.

The news, which has become the front page of Japan's economic magazine in 2022, comprehensively shows the difficult situation facing Japanese financial institutions and their survival strategies to 광명셔츠룸 survive the situation.

Just as households and businesses have accounts in banks, commercial banks have accounts in central banks. What is deposited in the account is a central bank checking account. Japan's massive quantitative easing, which began in 2013, focuses on the Bank of Japan purchasing financial assets of commercial banks and increasing the balance of checking deposits at commercial banks in return. The increased balance of checking accounts becomes a source of funds for banks to lend to households and businesses. As loans to households and companies increase, the amount of money circulated in the market increases, and the value of the currency can be expected to fall due to an increase in the amount of money. Inflation expectations arise in the domestic market, and the depreciation of the Japanese currency is induced in the foreign exchange market.

However, if the checking deposit deposited in the central bank has increased and the checking deposit does not lead to 신림셔츠룸 loans, an increase in the amount of currency and the resulting derived effect cannot be expected. Therefore, the Bank of Japan introduced a negative interest rate system in 2016 with the aim of encouraging commercial banks to lend. If the balance of the checking account exceeds a certain amount, a -0.1% interest rate will be charged for the excess.