Bank of Japan shocks markets by adopting negative interest rates

[Thav]

10. Banks have so many schemes

And deposit account interest rates are the least of their worries. Most banks give a paltry amount of interest on savings accounts - if you get 1% you're incredibly lucky. The average rate (as of like october, 2015) for savings accounts is 0.06%. Basically there's nothing left to penalize. Banks have much more action with commercial paper (loans, debt) than with deposits. Plus, they can get money much cheaper from the central bank than they can from depositors, so they have no incentive to try to increase deposits.

Banks would take that $700k loan, roll it in with other stuff and sell it to someone else or do some other financial jiggery pokery with it.

Greed doesn't trump logic in that industry, greed trumps ethics and integrity.