Shares of Japanese banks plummeted in Tokyo trading following the Bank of Japan unveiled a three-tiered scheme, in which banks will be charged -0.1% negative interest rate on certain deposits.
The BOJ said the 0.1% rate on the basic balance and 0% rate on the macro add-on balance will remain. The central bank said the new system will lower any impact on the earnings of financial institutions.
Mizuho Financial Group Inc. and Sumitomo Mitsui Financial Group Inc. slid 5.2% and 6.6%, respectively. After the announcement, Japan Post Bank Co. dropped as much as 10%.
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