2 Fukui-Based Regional Banks to Consider Capital Tie-Up

Economy

Tokyo, Sept. 13 (Jiji Press)--Fukui Bank <8362> and Fukuho Bank said Friday that they have agreed to start talks to form a comprehensive partnership including a capital tie-up, at a time when regional banks in Japan are struggling with population falls and ultralow interest rates.

The two regional banks, both based in the city of Fukui, the capital of the central Japan prefecture of Fukui, aim to strike a partnership deal by the end of fiscal 2019.

Under the envisaged partnership, the banks plan to streamline operations, including through the consolidation of their branches, while jointly helping local businesses improve their operations.

"We don't have any specific idea about business integration at the moment," a Fukui Bank source said.

According to the Financial Services Agency, 27 of 105 regional banks in the country posted losses from their core operations for five or more years in a row through fiscal 2018, which ended in March this year.

[Copyright The Jiji Press, Ltd.]

Jiji Press