The Bank continues to apply an interest rate of 0.1 percent to a portion of current account balances roughly corresponding the average balances financial  BIS central bankers’ speeches  7  institutions held in 2015, which amount to about 200 trillion yen.
Under this framework, the direct impact on financial institutions’ profits of the negative interest rate is minimized, while the policy still produces its intended effects on interest rates in financial markets. In fact, the impact of the policy is already clearly visible in developments in JGB yields.