Japan to Allow Banks to Shut on Weekdays

May 10, 2018

Tokyo- Japan's Financial Services Agency said Wednesday it plans to allow banks to shut on weekdays by easing a regulation on the days they can stay closed.

Since 1890, the country has limited the days on which bank branches are closed to weekends, national holidays, New Year's eve and the first three days of the year.

But many branches face falls in visitors due to the country's shrinking population and the widespread use of Internet banking.

It has become difficult to maintain existing branches in many places, particularly in areas suffering from depopulation.

The easing of the regulation, to be carried out as early as summer this year, would allow banks to operate their branches flexibly and cut branch operation costs, FSA officials said.

For instance, a bank would be able to open two nearby branches on alternate weekdays.

The measure would allow the bank to cut branch operation costs through payroll cuts and therefore make it easier to maintain the outlets.

The regulatory change will also cover small lenders such as shinkin banks.

The FSA will also allow banks to run joint outlets more easily.

At present, their areas in a joint outlet must be separated by partitions and clerks are not allowed to serve customers of more than one bank. This rule will be eased.

The measure is expected to benefit mainly regional banks and Japan Post Bank, which has a network of outlets throughout the country. Jiji Press