Japanese regional banks raising service fees

January 28, 2018

Tokyo- An increasing number of Japanese regional banks plan to raise commission fees for services including money exchange and remittance.

The fee increase reflects their worries about worsening business conditions due to rock-bottom interest rates and falling populations. The higher costs are expected to deal a blow to customers when they earn little interest income from their deposits.

Aomori Bank will raise remittance fees in February, to be followed by Ehime Bank in March, and Akita Bank and Oita Bank in April.

At Aomori Bank, for instance, an over-the-counter transfer of less than 30,000 yen to another account at the same branch will require a fee of 324 yen, triple the current level.

In February, Fukui Bank will start charging 324 yen for a money exchange of 50 to 300 coins or bank notes, a service that has been available for free. Customers will also have to pay fees for the use of money-changing machines.

Yamagata Bank and Bank of the Ryukyus will charge fees for depositing a large number of coins, beginning in February.

"We've made efforts to reduce costs, but current fee levels are not in line with business expenses," an official of Bank of the Ryukyus said.

Among major banks, Sumitomo Mitsui Banking Corp. raised money exchange service fees in May last year and Mizuho Bank took the same step in January. Bank of Tokyo-Mitsubishi UFJ is scheduled to follow suit in April.

In addition, some regional banks have raised or plan to raise fees for issuing certificates of deposit balances.

By contrast, banks have kept unchanged fees for remittances via the Internet. Oita Bank will offer a discount of 108 yen for an online money transfer. Jiji Press