Announcement of capital tie-up with Towa Bank's online financial giant "SBI" in Gunma October 23, 21:30
The Towa Bank, which has its head office in Maebashi City, has announced that it will form a capital tie-up with SBI Holdings, a major online finance company.
SBI has set up the "Regional Bank Union Concept", and this capital tie-up is the fifth line.
According to the announcement, "Towa Bank" will acquire the shares of SBI Holdings up to 200 million yen, while SBI will acquire the shares of Towa Bank up to 1% through its subsidiary SBI Regional Bank Holdings and form a capital tie-up.
In addition, the two companies will jointly establish a fund to support local companies affected by the new coronavirus.
The Towa Bank, which was established in 1918, has 94 stores in Gunma Prefecture and other areas. As of the end of March, deposits were approximately 1.9800 trillion yen and loans were approximately 1.45 trillion yen.
In 2009, the government injected 35 billion yen of public funds, but the government has repaid 20 billion yen.
The Towa Bank aims to strengthen its earning power by forming a capital tie-up with SBI, which has strengths in fintech that combines finance and IT.
"It's a necessary strengthening of alliances for local customers as funding is expected to increase towards the end of the year," said Hiroshi Ehara, president of the press conference.
On the other hand, SBI has set up a "Regional Bank Union Concept" to promote capital tie-ups with regional banks affected by population decline and negative interest rates, and this tie-up is the fifth bank.