As the business environment of regional banks becomes more difficult due to the declining population, the government and the Bank of Japan are planning to institutionally support the strengthening of the management base of regional banks.
It has been pointed out that there are too many regional banks, and the focus will be on whether or not the reorganization will actually proceed.
With 101 regional banks nationwide, the business environment is becoming more difficult due to the effects of the new coronavirus in addition to the declining population and ultra-low interest rates, and how to strengthen the management base is a common issue. ..
The government enacted a law to support the reorganization of regional banks in November last year, and plans to establish a new system to provide funds to regional banks that are going to merge or integrate their businesses.
It also started a special system to boost the cost reduction and management integration, such as regional banks to prospect the March this year the Bank of Japan.
The background is to support the local economy by strengthening the management base of regional banks so that local businesses and individuals can receive necessary financial services in the future.
Regarding the number of regional banks, it is deeply pointed out that Prime Minister Suga is in a so-called "overbanking" state, such as saying at a press conference before taking office that "it may be too much in the future", and this is actually the case. The focus will be on whether the reorganization of regional banks will proceed.