Japan’s Fair Trade Commission (JFTC) approved the merger of regional banks Fukuoka Financial Group and Eighteenth Bank as early as this month, a source with direct knowledge of the matter told Nikkei.
Japan’s Financial Services Agency had been promoting consolidation of regional banks as they struggle with weak loan demand and margin pressure from the Bank of Japan’s negative rates policy.
Fukuoka Financial Group wants to merge Eighteenth Bank with its Shinwa Bank unit. The combined entity would control more than 70% of lending on Japan’s southern-most main island of Kyushu.
The two banks have been considering offloading loans to other lenders after they were told by the JFTC to take measures to reduce their market share in April.
Full Content: Nikkei Asian Review
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