2 Regional Banks in Western Japan to Integrate Operations

Tokyo, July 23 (Jiji Press)–Two regional banks in Ehime Prefecture, western Japan, are in the final stage of talks on integrating their operations in April next year at the earliest, it was learned Thursday. Iyogin Holdings Inc., which has Iyo Bank as its core operating subsidiary, and Ehime Bank aim to strengthen their business foundations and reduce costs through the planned integration, informed sources said. They are expected to announce the move shortly. Combined assets at Iyogin Holdings and Ehime Bank, both listed on the Tokyo Stock Exchange’s top-tier Prime section, total more than 12 trillion yen on a consolidated basis. Iyo Bank and Ehime Bank will operate under a holding company without merging into a single entity, according to the sources. They will retain their current names. As the Bank of Japan has started to raise interest rates, competition for deposits and customers is intensifying among regional banks. In May, Aichi Financial Group Inc. in Aichi Prefecture, central Japan, and San ju San Financial Group Inc. in neighboring Mie Prefecture reached a broad agreement on their business integration. Aichi Financial owns Aichi Bank, while San ju San Financial has San ju San Bank under its wing. Shizuoka Financial Group Inc. in Shizuoka Prefecture, adjacent to Aichi, and Bank of Nagoya, which operates mainly in Aichi, are slated to integrate their operations in 2028. Shizuoka Financial is the parent of Shizuoka Bank. END [Copyright The Jiji Press, Ltd.]