Jun
22
Japan Negative Rates Drive Biggest Lenders From Overnight Market
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Three of five largest say minus rates complicate call funding
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Some banks relying on repurchase agreements to raise cash
A majority of Japan’s biggest private lenders are still unwilling to borrow from the market for overnight loans almost six months after the Bank of Japan announced its negative interest-rate policy.
Three of Japan’s five largest lenders by market capitalization said they were not tapping the unsecured overnight call market for funding, according to a Bloomberg survey this month of Bank of Tokyo-Mitsubishi UFJ Ltd., Sumitomo Mitsui Banking Corp., Mizuho Bank Ltd., Sumitomo Mitsui Trust Holdings Inc. and Resona Holdings Inc. Two said they are raising funds from the market to maintain relationships with clients…
Japan Negative Rates Drive Biggest Lenders From Overnight Market
