The nation's three largest banks plan to start charging fees on some deposits held by foreign financial institutions in an attempt to improve their earnings in the wake of the Bank of Japan's negative interest rate policy, sources close to the matter said Friday.
The Bank of Tokyo-Mitsubishi UFJ is set to introduce the step possibly next month for accounts held by foreign institutions for settlements in yen.
Currently, around ¥2 trillion ($18 billion) in such deposits are held by the bank, or around 1 percent of the overall balances in Japan.
Sumitomo Mitsui Banking Corp. has already decided to introduce a similar measure this month, while Mizuho Bank is also close to doing so, according to the sources.
The three banks are not considering charging fees on accounts held by companies or individuals.
The BOJ's negative rate policy adopted in January is squeezing profit margins on lending and the selling of financial products.