Japan's MUFG Bank to introduce fees on dormant accounts from July (updated)

Resona Holdings

22/01/2021 02:57

(Adds details on fees, statement from the bank, and background)
    TOKYO, Jan 22 (Reuters) - The banking unit of Japan's
Mitsubishi UFJ Financial Group Inc  8306.T  said on Friday it
would introduce maintenance fees on dormant accounts from July,
in a fee system overhaul to ride out the impact of profit
decline.
    MUFG Bank, the country's largest lender, said in a statement
it will charge an annual fee of 1,320 yen ($12.74), including
tax for new accounts in which transactions have not been made
for two years since they are 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.
    "By charging the new fee, we will prevent fraudulent
accounts to be opened and used, and will provide a safe and
high-quality financial service," the bank said.
    Other Japanese lenders have also worked on a fee system
reform.  
    Banks in Japan are seeking 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 Inc  8411.T  earlier this week started
charging a part of new customers 1,100 yen for issuing an
old-fashioned paper passbook. This was soon followed by Sumitomo
Mitsui Financial Group Inc  8316.T , the country's No.2 lender,
who plans to charge some of the new customers 550 yen a year,
starting April.
    Unlike a bank statement in Western countries, paper
passbooks in Japan have long been provided free for customers
when they open an account.
    Resona Holdings Inc  8308.T , Japan's fourth-largest lender
by assets, has had a fee since 2004 on accounts in which no
transactions have been made for more than two years holding less
than 10,000 yen. The Japanese bank charges 1,320 yen a year.

    ($1 = 103.5900 yen)

 (Reporting by Takashi Umekawa; Editing by Sherry
Jacob-Phillips)
 ((Takashi.Umekawa@thomsonreuters.com;))