Japan's Biggest Banks See ADRs Fall as Central Bank Maintains Rate Policy

By Sabela Ojea

The ADRs of Japan's largest banks dropped Friday after the country's central bank maintained its policy of negative interest rates.

The Bank of Japan left short-term interest rates unchanged at minus 0.1%, and maintained the cap on 10-year government bond yields at 0.5%, which both hurt the commercial banks's ability to earn profits.

Sumitomo Mitsui Financial Group Inc., Mizuho Financial Group Inc., and Mitsubishi UFJ Financial Group Inc. saw their ADRs trade 7.4%, 5.7% and 7% lower, respectively.

Sumitomo Mitsui Financial's ADRs are on pace to achieve their largest decline since they fell 6.9% on March 18, 2020.

ADRs of Mitsubishi UFJ Financial may see their biggest single-day drop since they slipped 7.2% on June 11, 2020.

Write to Sabela Ojea at [e-mail]; @sabelaojeaguix

(END) Dow Jones Newswires

03-10-23 1412ET