Over 60% of the interim settlement of accounts of regional banks nationwide is affected by a decrease in profits and a deficit Corona November 16, 18:35
The interim settlement of accounts of regional banks nationwide was almost complete, and regional banks with final profits and losses of "decrease" or "deficit" accounted for more than 60% of the total.
In addition to ultra-low interest rates, the impact of the new coronavirus has put pressure on profits due to increased costs for bad debt.
According to a summary of Mitsubishi UFJ Morgan Stanley Securities, 77 regional banks nationwide that are listed on the stock market have announced so far that the final profit and loss for the six months to September is
▽ 47. “Profit decrease”
at regional banks ▽ “Deficit” at two regional banks,
accounting for 63% of the total.
In addition to the business environment surrounding regional banks becoming harsher due to ultra-low interest rates, the impact of the new coronavirus has increased the cost of accounting for future bad debts, which has put pressure on profits. It is a factor.
On the other hand,
▽ 26 regional banks turned to “increased profit” and
▽ two regional banks turned into the black, but the
total final profit was 382.5 billion yen, a decrease of 30% from the interim results of the previous fiscal year.
In order to strengthen the management base of regional banks that support the local economy, the government will establish a new system to support a part of the expenses for business integration, and the Bank of Japan will also pay interest in addition to the target regional banks. The policy is to introduce a system.
Yusuke Yasuoka, an analyst at Mitsubishi UFJ Morgan Stanley Securities, said, "While the environment is being developed to support the management integration of regional banks, whether or not the reorganization of regional banks will actually proceed will be the focus of the future."