The upcoming removal of the government's decade-long unlimited guarantee on bank deposits is not expected to drastically change the financial portfolio of the average household, said Paul Sheard, chief economist for Asia at Lehman Brothers.
Households will probably remain heavily dependent on cash and bank deposits because the government's action is being taken for more symbolic reasons instead of strategic, he said.
On April 1, bank deposits of more than 10 million yen per person will not be guaranteed by the government, even if the bank goes under.