Bank of Japan: Higher Rates to Boost Japanese Banks' Income
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Bank of Japan report shows major lenders benefiting from higher interest income in a rising rate environment.
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Large banks will earn more money as rates increase due to favorable yield spreads.
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Estimated 3 trillion yen ($20 billion) upside for banks from a 1 percentage point rate increase.
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Banks' core deposits offset downside risks from temporary bond losses.
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Higher rates would improve total earnings for Japanese banks, BOJ report says.