Bank ofTokyo-Mitsubishi UFJ Ltd. will quit its role as a primary dealer ofJapanese government bonds July 15, the Ministry of Finance said in a July 13statement.
The MitsubishiUFJ Financial Group Inc. unit had in June that it will withdrawas one of the 22 primary dealers of government bonds. It will become the firstlocal bank to opt out of the role.
The move came after the Bank of Japan implemented negativeinterest rates to some reserves from commercial banks. Bank of Tokyo-MitsubishiCEO Takashi Oyamada previously criticized the policy, at a June 10 press conferencethat negative interest rates will make it difficult for the bank to meet allpurchase obligations.
Bank of Tokyo-Mitsubishi's primary dealer function will beconsolidated within MitsubishiUFJ Securities Holdings Co. Ltd. subsidiary , according to a July 13 company release.
The bank will participate in Japanese government bondauctions as an investor and will not change its policy of maintaining holdingsof government bonds.