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RETAIL BANKING | Staff Reporter, Japan

MUFG Bank to charge fees on dormant accounts

Japanese banks have been battling a low-rate environment and dwindling local market.

MUFG Bank will introduce maintenance fees on dormant accounts starting July in a fee system overhaul to ride out the impact of profit decline, reports Reuters.

The bank said it will charge an annual fee of $12.74 (JPY1,320 yen), including tax for new accounts in which transactions have not been made for two years since they were opened.

The move comes as Japanese banks have been grappling with years of low-rate environment and a slowly declining domestic market, and as the COVID-19 pandemic adds to their long-term uncertainty.

Lenders are looking to transform their operations by overhauling their branch networks and promoting digitalisation amid ultra-low interest rates.

In an aim to push customers towards the online service, Mizuho Financial Group has started charging a part of new customers $11 (JPY1,100) for issuing an old-fashioned paper passbook. This was soon followed by Sumitomo Mitsui Financial Group that plans to charge some of the new customers $5.31 (JPY550) a year starting April.

Here’s more from Reuters.

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