Difficulty Securing Stable Earnings under the Negative Interest Rate Policy
First written in FY2017. 3 of 9 entries say "Worsened", first in FY2019. Latest entry: FY2026.
The Yamanashi Chuo Bank moved to the "Worse" side of this theme in 2019, the same year as the typical company in this theme.
0 other companies' latest entry also says "Mitigated".
- FY2026Greater earnings opportunities from a policy rate increase were made more specific.Annual report
「The financial environment is entering a major period of transition, with a return to a “world with interest rates” as the Bank of Japan gradually raises its policy rate, creating expectations of greater earnings opportunities.」
Against the previous risk of lower yields under negative interest rates, greater earnings opportunities resulting from a policy rate increase were explicitly stated. - FY2025The reference to greater earnings opportunities from a policy rate increase was made more specific.Annual report
「The financial industry is expected to see greater earnings opportunities as the Bank of Japan raises its policy rate.」
Against the previous risk of lower yields under negative interest rates, the operating environment is described as offering greater earnings opportunities as a result of a policy rate increase. - FY2024Expectations of greater earnings opportunities following the lifting of negative interest rate policy were added.Annual report
「Meanwhile, although the financial sector faces a difficult operating environment, including entry by companies from other industries and a shrinking customer base due to the declining birthrate, population aging and population decline, it is expected to see greater earnings opportunities following the Bank of Japan's lifting of its negative interest rate policy.」
In addition to the previous references to lower yields under negative interest rate policy and the need to reform earnings structures, expectations of greater earnings opportunities following the lifting of the policy were noted. - FY2022RestatedAnnual report
「The financial sector is operating in an unprecedentedly difficult environment, characterized by lower yields on loans and securities investments due to the prolonged period of negative interest rate policy, entry by companies from other industries as a result of deregulation, a shrinking customer base due to the declining birthrate, population aging and population decline, and the expansion of a cashless society, in addition to the effects of the infectious disease.」
A difficult operating environment involving low interest rates, entry by companies from other industries, a shrinking customer base, the shift to cashless payments and the effects of infectious diseases continued to be noted. - FY2021WorsenedAnnual report
「Regional banks are operating in an unprecedentedly difficult environment, characterized by lower yields on loans and securities investments due to the prolonged period of negative interest rate policy, entry by companies from other industries as a result of deregulation, a shrinking customer base due to the declining birthrate, population aging and population decline, and the expansion of a cashless society, in addition to the effects of the spread of COVID-19.」
In addition to lower yields due to low interest rates, the risk assessment expanded to cover a difficult operating environment involving a shrinking customer base, entry by companies from other industries, the shift to cashless payments and the spread of infectious diseases. - FY2020WorsenedAnnual report
「In the financial sector, reform of earnings structures to maintain “sustainable profitability and soundness over the long term” has become an urgent priority, owing to the shrinking customer base resulting from the declining birthrate, population aging and population decline, and lower yields on loans and securities due to the prolonged period of negative interest rate policy. Conventional financial functions and services are also undergoing major changes as digitalization progresses, bringing entry by companies from other industries and the expansion of a cashless society.」
Lower yields due to the prolonged period of negative interest rate policy, together with the shrinking customer base, were identified as factors making reform of earnings structures an urgent priority. - FY2019WorsenedAnnual report
「In the financial sector, as negative interest rate policy has continued for an extended period, reform of earnings structures to maintain “sustainable profitability and soundness over the long term” has become an urgent priority, while conventional financial functions and services are also undergoing major changes as a result of innovations in digital technology.」
Against the backdrop of a prolonged period of negative interest rate policy, the difficulty of securing stable earnings was strongly presented as making reform of earnings structures an urgent priority. - FY2018RestatedAnnual report
「In the financial sector, securing stable earnings has become increasingly difficult under negative interest rate policy, while conventional financial functions and services are undergoing major changes as a result of innovative digital technologies.」
The difficulty of securing stable earnings under negative interest rate policy is also explicitly stated in the annual report. - FY2017First statedAnnual report
「In the financial sector, securing stable earnings has become increasingly difficult due to the effects of negative interest rate policy, while conventional financial functions and services are undergoing major changes as a result of IT innovation symbolized by fintech (FinTech).」
The external environment is described as making it difficult to secure stable earnings because of negative interest rate policy.