Chiba Bank, Chiba Kogyo Bank Mulling Business Integration

Chiba, Sept. 26 (Jiji Press)–Japanese regional lenders Chiba Bank and Chiba Kogyo Bank are planning to reach a basic agreement on their business integration by the end of this month at the earliest, people familiar with the matter have said. The two banks are considering setting up a holding company in April 2027 or later, with both of them coming under its umbrella, the sources said Thursday. They plan to avoid a merger to maintain customer convenience. On Friday, Chiba Bank and Chiba Kogyo Bank both issued statements saying that they are in discussions on integrating their businesses but that no concrete decisions have been made. The banks sharing the same operating area in Chiba Prefecture, east of Tokyo, aim to bolster their business foundations through business integration as they face intensifying competition for deposits after the return of a “world with interest rates” in Japan. In March, Chiba Bank acquired an equity stake of around 19.9 pct in Chiba Kogyo Bank for about 23.7 billion yen from Ariake Capital, an investment fund in Tokyo. The two banks have been discussing ways to deepen their ties since then, including the possibility of business integration. If realized, the integration would create Japan’s second-largest regional banking group, with combined assets of nearly 25 trillion yen. Chiba Bank is the largest regional lender in Chiba Prefecture and Chiba Kogyo Bank ranks third. END [Copyright The Jiji Press, Ltd.]