TOKYO -- Japan's Sumitomo Mitsui Banking Corp. will raise interest rates on dollar-denominated time deposits to 5.3% from 0.01%, Nikkei has learned, a rate substantially higher than what large U.S. lenders now provide on similar offerings.
The change applies to time deposits with maturities of six months and one year starting Sept. 25. SMBC and affiliate SMBC Trust Bank plan to double their combined dollar-denominated deposit balance, currently 2 trillion yen ($13.5 billion), by fiscal 2025.
