Japan Banks Battle for Deposits as Savers Chase Stock Market Highs

Japanese Banks Compete for Deposits as Savers Shift to Stocks

Japanese banks are in a historic shift, competing to shore up their deposit base as lending opportunities grow and consumers seek to beat inflation by moving savings into a booming stock market.

NISA Tax-Free Investment Program Boosts Savings Productivity

The government has been encouraging savers to make household cash more productive through the expanded NISA tax-free stock investment program. The amount invested through NISA accounts more than doubled over two years to reach 71 trillion yen by end-2025.

Banks Launch New Services to Attract Deposits

Sumitomo Mitsui Financial Group is rolling out 'Olive' retail accounts integrating securities and payments, while Mitsubishi UFJ Financial Group launched 'Emut'. Banks are also focusing on transaction banking to capture companies' daily cash flow.

With the Bank of Japan gradually raising rates, deposit interest is rising, but inflation is eating into savings after decades of deflation. The AI-driven investment boom and governance reforms have pushed the Nikkei 225 index to record highs.