Out of the 21 regional banks across Kyushu and Okinawa that settled their accounts for the fiscal year ending in March 2018, a total of 13 institutions announced an increase in net profit compared to the previous year. Even though the Bank of Japan’s (BOJ) decision to lower interest rates below zero has halted the profit of core businesses, the domestic economy has held firm thanks to an increase in revenue from security dividends and a reduction in costs of credit checks. The Bank of The Ryukyus Ltd. (Okinawa) and the Bank of Saga Ltd. have recorded an increase in profit, along with the Higo Bank Ltd. (Kumamoto) which saw a rise in profit following the recovery of businesses that had been affected by the series of earthquakes that hit the region two years ago. Oita Bank Co. Ltd. and The Eighteenth Bank Ltd. (Nagasaki) saw a drop in profit due to a number of factors, including swelling credit check expenses. The president of the Fukuoka Financial Group has stated that the impact of the negative interest rate policy is decreasing, but will continue to have an effect on revenue. Source: Saga Shimbun, 5/16/2018
Photo: 大分帰省中
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