Sumitomo Mitsui Banking Corp. will become the first megabank in Japan to accept deposits in yuan from individual customers, recognizing the growing demand as it becomes a major global currency and a potentially lucrative investment.
SMBC decided to expand the service in the Chinese currency after direct transactions between yen and yuan began on the Tokyo market in June.
It will begin accepting ordinary deposits and time deposits with up to one year in maturity from July 23.
The bank received requests from individuals who want to save in yuan, anticipating a rise in its value.
The one-year deposit rate is expected to be more than 1 percent a year. The yen-based value could fall if the yen strengthens during the deposit period.
In Japan, yuan-denominated deposits for individual customers are available at Shinsei Bank and Jibun Bank, an online bank established by the Bank of Tokyo-Mitsubishi UFJ and KDDI Corp.
SMBC will also offer loans in yuan to corporate customers. It will begin publishing daily exchange rates for the Chinese currency on July 23.
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