Japanese Regional Bank Realignment Accelerates under Suga

Economy Politics

Tokyo, Sept. 14 (Jiji Press)--Regional bank realignment through mergers and business integrations has accelerated under outgoing Japanese Prime Minister Yoshihide Suga, thanks to support from the government and the Bank of Japan.

"There are too many (regional banks)," Suga said at a press conference in September last year before taking office as prime minister, pointing to the need for industry realignment.

The government and the central bank soon introduced measures to promote mergers and integrations of regional banks at a time when adverse factors such as the falling population and protracted low interest rates were dealing blows to the sector.

In May this year, Aomori Bank <8342> and Michinoku Bank <8350>, both based in the northern city of Aomori, said they would merge. "We need a strong bank that can support the regional economy," Michinoku Bank President Takayuki Fujisawa said.

Fukui Bank <8362>, based in the central city of Fukui, clinched a final agreement to make Fukuho Bank, also based in Fukui, a subsidiary.

[Copyright The Jiji Press, Ltd.]

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