MUFG Bank Weighing Fees for Dormant Accounts

Economy

Tokyo, Dec. 6 (Jiji Press)--MUFG Bank is considering charging maintenance fees for accounts that have not seen any activity for a certain period of time, it was learned Friday.

The core banking arm of Mitsubishi UFJ Financial Group Inc. <8306> has floated a plan to charge an annual fee of 1,200 yen for accounts in which transactions such as withdrawals and deposits have not been made for two years, informed sources said. The envisaged fee would apply to accounts opened from next autumn, according to the sources.

If implemented, it would be the first time that one of Japan's three megabanks charge customers for dormant accounts. The other two megabanks are Sumitomo Mitsui Banking Corp. and Mizuho Bank.

The proposal comes as banks nationwide suffer from sluggish growth in revenue from lending business due to the Bank of Japan's ultraloose monetary policy, as well as high costs related to security systems such as anti-money laundering measures.

MUFG Bank hopes the new fees will help shore up its earnings, the sources said.

[Copyright The Jiji Press, Ltd.]

Jiji Press