Banks suspend dual-currency deposits in Japan
Returns on dual-currency and structured deposits will not be covered by state insurance scheme, Japanese FSA decides
Banks in Japan have stopped offering dual-currency deposit products in the wake of a ruling from the Financial Services Agency (FSA) that leaves premium generated by the instruments outside the country's deposit protection scheme. The ruling initially caused confusion among dealers, with some believing the deposit principal would also not be insured. That could have threatened the future of a market dealers say has an outstanding notional size of anything from $5 billion to $10 billion.
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