TOKYO (Reuters) – The Bank of Japan’s ultra-loose monetary policy is prodding commercial banks to slowly diversify their source of revenue, with industry giant Mizuho Bank announcing on Tuesday a plan to hike some fees for its automatic teller machines (ATM).
Mizuho Bank said it will raise bank transfer fees using ATM machines by as much as double the amount currently charged beginning in March 2020 to “enhance its service to customers.”
Move - Market - Expectations - Bank - Japan
The move comes amid heightening market expectations that the Bank of Japan could ease monetary policy as early as this month possibly by deepening negative interest rates – a move that will further strain financial institutions’ profits.
As years of ultra-low rates squeeze profits from core lending operations, Japan’s banking regulator is also warming to the idea of allowing commercial banks to charge depositors maintenance fees for their bank accounts, sources familiar with the matter say.
Banking - Service - Industry - Fees - Services
“Banking is a service industry. It’s natural to charge fees for providing services such as maintaining bank accounts,” an official at the Financial Service Agency (FSA) said.
While the additional revenue is attractive, many banks are cautious of charging fees for fear of angering depositors and prodding them to flee...
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