Tokyo, Oct. 2 (Jiji Press)–Three regional banks based in northeastern Japan–Aomori Michinoku Bank, Bank of Iwate and Akita Bank–are moving toward talks on a management integration. Procrea Holdings Inc., parent of Aomori Michinoku Bank, as well as Bank of Iwate and Akita Bank, said Friday that they would submit proposals to begin such talks to their respective boards the same day. The integration, if realized, would create the largest regional banking group in the Tohoku region of northeastern Japan, with more than 13 trillion yen in combined consolidated assets. The three banks’ presidents will hold a joint news conference in Morioka, the capital of Iwate Prefecture, on Friday afternoon to explain the rationale for entering negotiations. Aomori Michinoku Bank, based in the city of Aomori, was formed in January 2025 through the merger of Aomori Bank and Michinoku Bank. The bank has about 5.8 trillion yen in assets. Bank of Iwate, headquartered in Morioka, and Akita Bank, based in the city of Akita, are both listed on the Tokyo Stock Exchange Prime Market, each with assets exceeding 3 trillion yen. Regional banks across Japan are pursuing cross-prefectural alliances and mergers to strengthen their customer bases and attract deposits as the population shrinks and the Bank of Japan raises interest rates. In central Japan, Shizuoka Financial Group Inc. and Bank of Nagoya reached a basic agreement on management integration in March. Gunma Bank in Gunma Prefecture, eastern Japan, and Daishi Hokuetsu Financial Group Inc., which operates primarily in Niigata Prefecture, central Japan, plan to integrate their management in April 2027. END [Copyright The Jiji Press, Ltd.]
