"Open an account and receive a gift worth 18,000 yen" "Deposit revolution, 2% interest rate" Banks are now competing to acquire deposits. Why? Because Japan has become a "world with interest rates". This series covers the current state of the Japanese economy. How will interest rates change our lives? ■2% on deposits!? Only one week left until the first global Christmas in 17 years. People are seen buying gifts at electronics stores. A woman in her 20s says, "I bought a shaver for 33,000 yen." --I was given 3,000 points? "I'm going to use the money I save to have a luxurious Christmas dinner." The "point economy" is now in full bloom! In December, PayPay Bank introduced something called a "deposit revolution." Conditionally, the deposit interest rate will be a whopping 2%, which is 20 times that of megabanks. The "world with interest rates" has returned for the first time in 17 years. We interviewed the site where the turning point was reached. ■ "A world with interest rates" - a "burden" becomes a "treasure"In November, a branch of Sumitomo Mitsui Banking Corporation reached a turning point. It had been located on the street in front of the station for 44 years. It has now moved to a shopping mall, bringing an end to its history. This is to get rid of the image that it is "difficult to enter" and "stuffy". Yusuke Taniike, store manager, Ricopa Higashiyamato branch of Sumitomo Mitsui Banking Corporation "We are getting a lot of inquiries asking, 'What is the interest rate on deposits now?'" Deposits, which were a "burden" for banks, have now become a "treasure". In order not to miss out on this important source of income, they are increasing their contact with customers. There are also changes in the lending field. Yoshihisa Akasako, who works at a bank in Chiba Prefecture, visited a company that handles custom-built homes. Takeshi Kudo, CEO of Studio Citta, said, "Interest rates are gradually changing, not only for Keiyo but also for other banks..." Companies that have taken low interest rates for granted are finding it difficult to get used to negotiating interest rates. On the other hand, while you might think that the lenders are used to it, in fact... Keiyo Bank Corporate Sales Department, Akasako Yoshihisa: "Interest rates have remained flat for 17 years, so this is the first time since I joined the sales field. It's a partial return to the old bank business model." ■Long lines for high interest rates! The race to collect deposits When we talk about "old banks," we think of the time when interest rates were high. The deposits that customers brought were also high. A housewife casually took out 3 million yen in cash with a sash from a drawstring bag! There were long lines of people all over the city looking for interest rates. From character goods to travel vouchers and even pumpkins, there was a gift battle in every possible way. Interest rates are the "thermometer of the economy." The whole of Japan was full of vitality. However, after that, Japan was in "hypothermia" for 30 years. Having overcome the negative era, it is finally trying to return to a "world with interest rates." ■How to make money with interest rates by "buying 500 million"? The trading department of a securities firm in Tokyo that handles government bonds has regained its vitality for the first time in a long time. Government bonds are certificates of debt issued by the government. They can be bought and sold freely, and prices and yields are determined by market supply and demand. Traders make profits from the price difference that arises when buying and selling, while assessing the daily changing trends of the market. The market, which had been in a state of cardiac arrest due to negative interest rates, has started to move again, and profit opportunities have returned. However, because the amounts are so large, one wrong step can be a major burn. It is a world where experience and quick judgment are important. In this environment, it is the veterans who are making their presence felt. Shinichiro Kato has been working exclusively on bonds since 1997. He is still fighting on the front lines. ■The mysterious room where "billions of yen are flying around" Sales: "They say, 'I'd like to buy if it's 1.5 (bps)'" Okasan Securities government bond trader Kato Shinichiro: "1.5 (bps) is the bid (buying price)." Salesperson: "So it's the bid (buying price)." Kato: "Up to 1.25 (bps) is fine." Salesperson: "Kato, if it's 1.25 (bps), do you want to buy all three?" Kato: "9 times, 10 times, 11 times." Salesperson: "9 times, 10 times, 11 times. I'll buy 500 million each." It's like a code exchange. What on earth is going on? Okasan Securities government bond trader Kato Shinichiro: "The customer has a price he wants to buy at, and my price. It's a negotiation to see if we can come to a compromise. I think it's difficult to respond unless you negotiate on the premise that (interest rates) will move." The market was in turmoil again that day. I never paid any attention to the press conferences of the Bank of Japan's policymakers, but now I'm glued to them. A young trader who joined the company when interest rates were static... Did you imagine that interest rates would be like they are now? Masahiro Kinutani, government bond trader at Okasan Securities: "No, I didn't imagine it at all. When I first came here, the market was so rigid that futures prices only moved 5 or 10 sen a day." A new wind has blown into the "dead" market, and the challenge of bringing back vitality to Japan has just begun. ▼TBS NEWS DIG Official Website https://newsdig.tbs.co.jp/ ▼Please subscribe to our channel! / @tbsnewsdig ▼Information provided by "TBS Insiders" https://www.tbs.co.jp/news_sp/tbs-ins... ▼Video provided by "TBS Scoop Post" https://www.tbs.co.jp/news_sp/toukou... #News #news #TBS #newsdig