So for years Japanese saved but did not invest into Japan. Banks were forced to buy JGBs to earn income... but as yields fell the income went to zero.
Now Japanese are starting to invest so loan growth is picking up and deposits are shrinking. This helps by letting bond yield rise - and increasing interest income.
Regional banks trade below book - so are using the cash to buy back shares as per government guidance
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Apr 6
at
9:56 AM
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