Japanese Bankers Association Chairman: Domestic Business Importance to Increase Amid Gradual Rate Hikes, Local Lending Growth

The Chairman of the Japanese Bankers Association has indicated that the relative importance of banks' domestic businesses is expected to increase. Under rising interest rates, banks are shifting their business models away from prioritizing deposits. Additionally, the Bank of Japan (BOJ) will raise rates extremely gradually while assessing the market impact. The association will also continue to seek further relaxation of the bank-brokerage firewall. Japan's banks expect gradual interest rate rise and continued local lending growth.