September 17, 2019 / 11:41 PM / 3 months ago

Sumitomo Mitsui Trust considers fees if negative rates deepen - Sankei

TOKYO, Sept 18 (Reuters) - Sumitomo Mitsui Trust Bank Ltd will consider charging account-holders a fee if the Bank of Japan (BOJ) decides to deepen negative interest rates, the head of the bank told the Sankei newspaper.

Under its ultra-loose monetary policy, the BOJ guides short-term rates towards -0.1%, eroding profit margins at financial institutions.

“(Charging fees) is something for the banking industry as a whole to think about,” Sumitomo Mitsui Trust Bank President Masaru Hashimoto told the Sankei in an interview, according to the paper.

If negative rates deepen, Sumitomo Mitsui Trust “will also consider it,” Hashimoto said.

The BOJ is due to announce its policy decision on Thursday after a two-day board meeting, where deepening negative rates is expected to be an option if it were to ease. (Reporting by Chang-Ran Kim in Tokyo; Editing by Stephen Coates)

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