Fukushima Bank to Accept Investment from SBI

Economy

Fukushima, Nov. 11 (Jiji Press)--Fukushima Bank <8562> said Monday that it will accept a capital injection from major Japanese online financial services firm SBI Holdings Inc. <8473> as the lender struggles with weak profitability.

The move means that the regional bank, based in the city of Fukushima, northeastern Japan, will join SBI's initiative to create the country's "fourth megabank," or a union of regional banks, through investments.

Fukushima Bank will be the second lender to join the initiative after Shimane Bank <7150>, based in Matsue in the western prefecture of Shimane.

The move comes as regional banks grapple with dwindling populations and adverse effects from the Bank of Japan's ultraeasy monetary policy.

SBI will invest 1.11 billion yen in Fukushima Bank to become its top shareholder, with an equity stake of 19.25 pct in terms of voting rights. SBI will also send an official to sit on the board of the bank as an outside director.

[Copyright The Jiji Press, Ltd.]

Jiji Press