EXCLUSIVE: Tokyo Kiraboshi to Realign Group Firms’ Functions

Tokyo, Aug. 12 (Jiji Press)–Tokyo Kiraboshi Financial Group Inc. plans to realign the functions of its group companies, its president, Hisanobu Watanabe, has said in a recent interview with Jiji Press. The regional banking group aims to improve its operational efficiency by respectively consolidating its consulting and systems divisions that are currently scattered at subsidiaries. “Comprehensively offering services will be more beneficial to our customers,” Watanabe said. In May, Tokyo Kiraboshi fully repaid 40 billion yen in public funds, or taxpayer money, to the Tokyo metropolitan government ahead of schedule. “A growth strategy to raise the group’s capital adequacy ratio, which has fallen following the redemption of preferred shares (that had been allotted to the Tokyo government in exchange for the public funds) is required,” Watanabe said. Tokyo Kiraboshi, the parent of Kiraboshi Bank and UI Bank, a digital bank, will consider including the planned realignment of group firms’ functions in its next medium-term business program from fiscal 2027 starting next April. The medium-term program is expected to call for concentrating the group’s deposit and housing loan operations into UI Bank and allowing Kiraboshi Bank to focus on services for corporate clients, such as support for business succession and overseas expansion. UI Bank “will be able to offer competitive interest rates,” Watanabe said, pointing to its substantially lower operating costs compared with Kiraboshi Bank. On accelerating business integration moves among regional banks in Japan, Watanabe said, “Now that we have finished repaying public funds, we are now at a stage where we should study collaboration with various companies.” Japanese investment fund Ariake Capital Inc., which targets regional banks, holds an equity stake of nearly 8 pct in Tokyo Kiraboshi. Watanabe said: “I think this reflects (the fund’s) expectations for us. But improving corporate value is our mission to all stakeholders.” END [Copyright The Jiji Press, Ltd.]