Three northern Japan regional banks set to begin merger talks - reports
Shares of three regional banks in northern Japan surged on Friday after rumors surfaced that they are set to commence talks on a management integration, as investors welcomed the idea of consolidation within the sector. Procrea Holdings, which owns Aomori Michinoku Bank, surged over 7% by 03:58 GMT, while Bank of Iwate and Akita Bank each climbed more than 1%.
These three lenders are situated in neighboring prefectures within the Tohoku region, as per reports. Procrea Holdings and the other two banks reportedly plan to present proposals to their respective boards on Friday to initiate discussions, according to the reports. Should the integration proceed, it would result in a banking group with over 13 trillion yen ($82 billion) in combined assets, as per Jiji Press.
The proposed merger is timely, given that Japan's regional banks are grappling with declining populations, heightened competition for deposits, and increased expenses associated with digital investments. The presidents of the banks are anticipated to hold a joint press conference in Morioka on Friday to elucidate the planned talks, as per Jiji.
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