More Bank Groups in Central Japan Agree on Biz Integration

Tokyo, May 13 (Jiji Press)--Aichi Financial Group Inc. and San ju San Financial Group Inc., regional banking holding companies of central Japan, said Wednesday that they have reached a basic agreement on a business integration set for April next year.

The two companies will create a joint holding company to place their banking units under its wing. The integration will create a group with over 11 trillion yen in assets.

The integration plan was approved by the boards of both companies Wednesday.

Aichi Financial Group, based in Nagoya, has Aichi Bank under its wing, while San ju San Financial Group, which controls San ju San Bank, operates mainly in Mie Prefecture.

Regional lenders across Japan are in intensifying competition for depositors and borrowers as the Bank of Japan is in a credit-tightening cycle after raising its policy rate back to positive territory.

[Copyright The Jiji Press, Ltd.]