August 16, 2022 09:59 GMT
- Reuters reports Mizuho Bank was charged negative interest rates on some of its deposits at the BoJ in mid-July through August, a spokesperson said, as the main banking unit of Mizuho piled up reserves.
- It is the first time in seven months that negative rates were charged on reserves held by any of Japan's megabanks* Spokesperson for Mizuho said the bank held 902.8 billion yen in BOJ reserves with negative rates.
- Japan's megabanks have mostly avoided paying the interest by shifting money out of BOJ reserves. But Mizuho increased deposits this time as it shifted funds away from short-term Japanese government bonds due to their plunging yields, the spokesperson said.