BoJ says Japan is overbanked

The central bank says Japanese banks may have too many employees and branches

Bank of Japan
The BoJ says the number of employees/branches in Japanese banks may be in excess relative to demand.

The Bank of Japan has warned the excessive number of bank employees and branches has led to intensified competition among banks and resulted in a decline in profitability.

Deteriorating bank profitability is a common phenomenon in most advanced economies, as the prolonged ultra-loose monetary policy has squeezed net interest margins. Yet, the BoJ says the low profitability of Japanese banks is “striking from an international perspective”.

In its semi-annual financial system report, published

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