Accelerating cost-cutting measures.
Reuters reports that Japan’s top banks are accelerating cost-cutting measures as low interest rates and strict capital regulations continue to sap profits, with Mizuho Financial Group saying it would hire fewer people over the next decade to trim expenses.
Japanese banks have been hit by diminishing returns on loans with the Bank of Japan aggressively driving down interest rates to combat deflationary pressures.
“It’s difficult to increase revenues in this competitive environment and the negative rate policy,” Mizuho CEO Yasuhiro Sato said at a briefing on Monday, after the lender reported a 12 percent drop in its second-quarter profit.
“Boosting cost competitiveness and productivity is imperative,” he added.
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