2 Western Japan Banks Form Capital, Biz Tie-Up

Osaka, April 17 (Jiji Press)–A regional lender based in the Kinki western Japan region and the parent of another local bank announced a capital and business alliance Friday. Shiga Bank and Senshu Ikeda Holdings Inc., the parent of Senshu Ikeda Bank, based in the city of Osaka, will invest about 0.5 pct to 1 pct in each other without integrating their management. As the reorganization of regional banks progresses nationwide, the two Kinki-based banks aim to strengthen their competitiveness. The two companies will discuss details of their partnership. They hope to achieve synergies by supporting business succession and enhancing services related to asset formation for retail clients. At a press conference in Osaka on Friday, Shiga Bank President and CEO Shinya Kubota said, “We will respect our independence while enhancing our regional financial capabilities.” Regarding the possibility of management integration, Senshu Ikeda Holdings President and CEO Hirohito Sakaguchi said at the press conference, “It’s one of the future options, but we are not considering it at present.” Ariake Capital Inc., a Tokyo-based investment fund specializing in investments in regional banks, has a stake of just over 5 pct in Shiga Bank and slightly below 10 pct in Senshu Ikeda Holdings. Both Kubota and Sakaguchi denied any involvement by the fund in the latest partnership. END [Copyright The Jiji Press, Ltd.]