Japan's Bank of Yokohama, Chiba Bank to enter comprehensive tie-up -Nikkei (updated)
09/07/2019 10:56
(Adds details)
TOKYO, July 9 (Reuters) - Japan's Bank of Yokohama and Chiba
Bank Ltd 8331.T will enter into a comprehensive tie-up to
cooperate in a range of businesses, the Nikkei newspaper said on
Tuesday, a deal that would bring two of Japan's top regional
lenders close together.
The deal is the latest to highlight the plight of regional
banks in the world's third-largest economy, where years of
near-zero interest rates have made traditional banking barely
profitable, meaning lenders have to add scale to survive.
Most regional lenders are also suffering from a dwindling
population and a lack of demand in many of Japan's prefectures.
However, both Yokohama and Chiba are part of the greater Tokyo
area, meaning that demographics and loan demand are among the
best in the country.
Representatives for Bank of Yokohama and Chiba Bank could
not be immediately reached for comment.
The heads of both lenders will hold a news conference on
Wednesday, the Nikkei said.
The banks could cooperate on everything from mergers and
acquisitions and development of new products, working together
to share customers, it said.
Bank of Yokohama, which is part of Concordia Financial Group
7186.T , is Japan's largest regional lender. Chiba Bank is the
country's third-largest regional lender, the Nikkei said.
(Reporting by Takashi Umekawa
Writing by David Dolan; Editing by Himani Sarkar)
((david.dolan@tr.com; +81 3 6441 1526; Reuters Messaging:
david.dolan.thomsonreuters.com@reuters.net))