Banks in Shikoku, including those in Tokushima, Kagawa and Kochi, raised their time deposit rates. On the 2nd, Awa Bank, Hyakujushi Bank, Kagawa Bank and Tokushima Taisho Bank also raised their rates, followed by The Bank of Kochi on the 5th.
Financial institutions in Shikoku raised their time deposit rates in response to trends in market interest rates. The moves are seen as part of a broader trend following the Bank of Japan’s rate hike.
Awa Bank raised its rates to 0.65% for 1-year deposits and 0.85% for 5-year deposits, among others, representing an overall increase of 0.1% to 0.17%. Hyakujushi Bank set its rates at 0.6% for 1-year deposits and 0.8% for 5-year deposits. Kagawa Bank and Tokushima Taisho Bank also raised their rates by 0.1%, to approximately 0.6% for 1-year deposits and 0.8% for 5-year deposits.
The Bank of Kochi raised its rates to 0.63% for 1-year deposits and 0.71% for 3-year deposits. Each bank is believed to be adjusting its rates as it competes for regional deposits.
These moves are presumably intended to expand the interest rates offered to customers against a backdrop of higher funding costs, particularly at regional banks.