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Regional banks, Japan Post Bank to be hit hardest

TOKYO -- With the Bank of Japan's negative interest rates coming into effect on Tuesday, most expect downward pressure on earnings at financial institutions. However it is the country's smaller regional banks and Japan Post Bank that analysts say will be hit hardest.

Japan Post Bank is thought to be one of the most vulnerable to the negative interest rate introduced by the Bank of Japan.

     The BOJ now charges financial institutions 0.1% for a portion of the current account balances they hold at the central bank. While the direct effects of the decision will be limited, further declines in interest rates on loans and yields on securities will harm financial institutions.

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