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Japanese savers have rediscovered interest rates and banks are feeling it
Rising yields have made retail government bonds more attractive than bank deposits, with sales nearly doubling to 6 trillion yen in April-October, officials said.
- Following the Bank of Japan's departure from near-zero interest rates last week, Japanese households are shifting a portion of their $7 trillion in bank deposits into government bonds.
- Japanese government bond sales nearly doubled to 6 trillion yen in the April-October period as yields on popular retail notes climbed above 2 per cent, outstripping deposit rates below 1 per cent.
- Takashi Kamachi, a self-employed businessman in Osaka, recently moved 600,000 yen into retail government bonds. "Banks are promoting time deposits again, but I thought government bonds looked far more attractive," Kamachi said.
- Finance Minister Satsuki Katayama is studying additional retail bond products and tax breaks, though commercial banks fear the shift could drain deposits and reduce lending capacity.
- Senior ruling party lawmaker Kenji Nakanishi advocates expanding retail ownership to stabilize debt funding, while Keio University professor Takero Doi warned that replacing banks with households will not solve the underlying debt problem.
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Japanese savers have rediscovered interest rates and banks are feeling it
For years, Japanese savers left their cash in bank accounts that paid next to nothing because few things paid much more. With government bonds now yielding four times as much as deposits, that no longer holds and banks are starting to worry.
·London, United Kingdom
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Analysis:Japanese savers have rediscovered interest rates and banks are feeling it
TOKYO, Nov 6 : For years, Japanese savers left their cash in bank accounts that paid next to nothing because few things paid much more. With government bonds now yielding four times as much as deposits, that no longer holds and banks are starting to worry.When the Bank of Japan last week declared victory in i
·Singapore, Singapore
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Total News Sources3
Leaning Left0Leaning Right1Center2Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
C 67%
R 33%
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