Japanese banks can shut branches on weekdays too

Reported by: |Updated: May 10, 2018

Japanese banksJapanese regulator the Financial Services Agency said it plans to allow banks to shut on weekdays by easing a regulation on the days they can stay closed. Since 1890, Japan has limited the days on which bank branches are closed to weekends, national holidays, New Year’s Eve and the first 3 days of the year. Banks have been seeing reduction in the number of customers visiting the branches because of the shrining population and increased use of internet banking. The banks would implement the new rule this summer thereby making their branches operate flexibly and cut branch operation costs. FSA said the measure would allow the banks to slash operation costs through payroll cuts, making it easier to maintain the outlets. The regulatory change will cover small lenders and the FSA will also allow banks to run joint outlets more easily.