Japan bank shares rise on hopes for smoother mergers of regional lenders
05/10/2018 10:23
TOKYO, Oct 5 (Reuters) - Shares in Japanese banks jumped on
Friday on expectations that smaller lenders would be able to
merge more easily, after the government said it would rethink
how it applies antimonopoly laws to mergers in the sector.
The news followed a spat between the antitrust watchdog and
financial regulators after a drawn-out review of the merger of
Fukuoka Financial 8354.T and Eighteenth Bank 8396.T sparked
concern that consolidation had become too tough. urn:newsml:reuters.com:*:nL3N1VF30O
But the government is keen for regional banks to merge, in
order to survive a declining population and falling earnings.
Shares of Chiba Bank Ltd 8331.T , 77 Bank Ltd 8341.T and
Shizuoka Bank Ltd 8355.T rose about 3 percent, helping to make
the Topix banking subindex .IBNKS.T the best sectoral
performer. The broader market fell 0.5 percent .TOPX .
Friday's news was part of a draft plan aimed at achieving
Prime Minister Shinzo Abe's last major economic reforms during
his final term in office, which include boosting companies'
productivity. urn:newsml:reuters.com:*:nL4N1WL0MI
The Financial Services Agency has been a vocal supporter of
consolidation among regional banks, while the Fair Trade
Commission (FTC) has said bank mergers could undermine
competition.
(Reporting by Junko Fujita; Editing by Chris Gallagher and
Clarence Fernandez)
((813-6441-1840, junko.fujita@thomsonreuters.com, Reuters
Messaging:junko.fujita.reuters.com@reuters.net;))