THE Bank of Japan (BoJ) is quietly walking back its unpopular negative interest rates policy with a controversial scheme designed to drive mergers among weaker, smaller lenders, a move some insiders see as a risky deviation into industrial reform.
As Covid-19 adds pain for regional banks suffering from years of ultra-low interest rates, the BoJ this month unveiled a plan to pay 0.1% interest on deposits held by lenders that cut costs, boost profits or consolidate.
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