TOKYO -- The Bank of Japan's negative-rate policy will squeeze profits at the three Japanese megabanks by at least 300 billion yen ($2.96 billion) or so in the current fiscal year ending next March, government estimates show.
A survey by the Financial Services Agency focused on how negative interest rates impact interest income, derivatives trading, and such retail transactions as sales of asset management products at the three megabanks. Mitsubishi UFJ Financial Group's profit will fall by 155 billion yen, Sumitomo Mitsui Financial Group will lose between 75 billion yen and 76 billion yen in black ink, and Mizuho Financial Group's profit will retreat by 61 billion yen, the results showed. Narrower interest rate spreads are the chief culprit.
