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Mizuho Charged Negative Rates on BoJ Deposits For First Time in 7 Months

BOJ
  • 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.

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