8 Japanese Regional Banks to Support Auto Parts Supply Chains

Hiroshima, Feb. 27 (Jiji Press)–Eight Japanese regional banks on Friday concluded an agreement to cooperate on supporting the automotive industry in a bid to help their client auto parts makers maintain and strengthen supply chains. The banks will also pool their expertise and knowledge to work together on promoting the expansion of sales channels for their clients, as well as facilitating business alliances and mergers and acquisitions beyond regional boundaries. The agreement was concluded by Hiroshima Bank, Bank of Yokohama, Yamagata Bank, Ashikaga Bank, Gunma Bank, Shizuoka Bank, Bank of Nagoya and Chugoku Bank as the auto industry faces rapid changes, such as electrification and autonomous driving technology. It has become difficult for auto parts makers without advanced technology or competitiveness to survive in an industry that is shrinking amid the country’s declining population. Against this background, the banks aim to offer assistance to nurture startups that have innovative ideas but are limited in funding so as to encourage technological innovation and create new businesses. On Friday, heads of the eight banks attended a signing ceremony held in the western Japan city of Hiroshima. Hiroshima Bank President Kazuo Kiyomune said that the deal “will be more than simple cooperation and instead serve as a platform to provide auto-related companies with strategic support that covers a wide area.” END [Copyright The Jiji Press, Ltd.]