How does the BoJ hike affect Yokohama Bank’s profits?

Higher policy and prime rates lift yields on variable loans and new originations, which can widen net interest margins. The benefit arrives in stages as loans reset. Profit impact depends on how fast deposit costs rise. If deposit beta stays below asset repricing, net interest income can increase while credit costs remain stable.

What is the short-term prime rate and why does it matter?

It is a benchmark that large banks use to price many floating corporate loans and some mortgages. When it rises, borrowing costs increase, and new loan rates reset higher. This usually supports bank margins. For customers, it may encourage choosing fixed rates or shortening loan terms to manage interest expense.

Will deposit rate increases squeeze margins?

They can if pass‑through is fast. Yokohama Bank can manage this by growing low‑beta transaction balances, staging time deposit campaigns with caps, and diversifying into fee income. If deposit beta rises gradually and below asset yield gains, margins can still improve even with modest deposit rate increases.

What should investors watch next for rate direction?

Focus on Governor Ueda’s Dec 25 speech, wage trends, core inflation, and market odds for another hike in 1H26. These factors drive the yield curve and bank funding costs. Clear guidance supports gradual repricing and better visibility on earnings for Yokohama Bank and other regional lenders in Japan.

Global Market Insights

Yokohama Bank December 24: BoJ Hike Spurs Nationwide Rate Rises

ByHuzaifa Zahoor December 25, 2025December 25, 2025

Yokohama Bank faces a new rate backdrop after the BoJ raised its policy rate to 0.75%. Megabanks have lifted the short-term prime rate to 2.125%, and regional lenders are nudging deposit rate levels higher. These shifts reshape funding costs, loan pricing, and credit demand in Kanagawa and the wider Kanto area. With Governor Ueda speaking on Dec 25 and markets pricing a 60% chance of another hike in 1H26, we outline what this means for margins, growth, and risks for Yokohama Bank.