Japan will create a scheme next year that offers subsidies to regional banks that merge or consolidate, the Nikkei newspaper reported, underscoring premier Yoshihide Suga’s resolve to boost the ailing sector.
Such a move would follow the Bank of Japan’s announcement on Tuesday, November 10, that it will create a scheme to pay regional lenders that consolidate or cut costs interest of 0.1%.
In a scheme set to be created by summer 2021, the government will pay up to around 3 billion yen ($28 million) per merger or consolidation to subsidise the cost of integrating computer systems, Nikkei reported, without citing sources.
The move reflects the government’s view that the cost of merging is keeping regional banks from choosing the option to boost their profitability, the newspaper said.
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