Jiji PressTOKYO (Jiji Press) — Bank of Yokohama and Chiba Bank said Wednesday that they have reached a basic agreement to collaborate in corporate and retail banking services.
The lenders aim to pursue sustainable growth through the tie-up as Japanese regional banks are struggling with prolonged low interest rates.
Bank of Yokohama, a unit of Concordia Financial Group Ltd., is the largest Japanese regional bank in terms of assets, while Chiba Bank is in third place.
Their tie-up may promote realignments and alliances in the regional banking industry.
“The collaboration will help the two banks meet the needs of customers in terms of quantity and quality of information and services,” Bank of Yokohama President Yasuyoshi Oya told a news conference in Tokyo.
The banks expect tens of billions of yen in synergies, Oya said.
His Chiba Bank counterpart, Hidetoshi Sakuma, said, “We aim to achieve results swiftly to become an advanced model of a regional bank tie-up.”
Both said there are no plans for a merger.
In corporate banking, the two banks plan to cooperate on merger and acquisition support and syndicated loans. They are considering the mutual use of overseas bases. For retail customers, the banks will collaborate on inheritance-related services.
The two banks’ presidents expressed their interest in forging a three-way tie-up that will also involve Musashino Bank, another regional bank.