Three decades after a bad debt crisis in Japan forced a wave of mergers that created its mega lenders, the focus now is on consolidation in the nation¡¯s $3 trillion regional banking industry.
Several mergers in recent months and cheaper valuations are spurring bets among investors that more deals are on the way among Japan¡¯s 73 listed smaller banks. The lenders are facing increased competition for deposits as an inexpensive funding source with interest rates rising, and new rivals such as internet-based banks are also growing.
¡°I don¡¯t think there¡¯s a single regional bank president who isn¡¯t thinking about consolidation,¡± said Toyoki Sameshima, an analyst at SBI Securities in Tokyo. ¡°It is getting harder to attract deposits and I think that¡¯s one of the changes that would prompt banks to consider consolidation.¡±
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.