The Bank of Japan announced a record ¥84 trillion was left undeposited at yearend. The total amount of cash kept at home or in offices, rather than deposited in banks, is up 2 percent from last year.
This amount of cash reflects the cautious attitude of Japanese toward the current economic situation and distrust in the banking system's conditions. If banks offered better service and paid more interest, the over-reliance on cash would be greatly reduced.
Japan's bank interest rate remains ultralow, offering little incentive to deposit money. Traditionally, keeping cash at home, the so-called tansu yokin (wardrobe savings), has always been a common practice in Japan, still a relatively safe country.