While the focus is on the reorganization of regional banks nationwide, "Fukui Bank" has officially announced its policy of investing 5 billion yen in the same regional bank "Fukuho Bank" in Fukui Prefecture to make it a subsidiary.

The aim is to increase profitability and survive as the business environment becomes severe due to the declining population and the spread of the new coronavirus infection.

This was revealed by "Fukui Bank" and "Fukuho Bank" at a press conference in Fukui City on the 14th.

According to this, Fukui Bank will invest 5 billion yen in the form of undertaking a third-party allotment of capital by Fukuho Bank after July, and will aim to make it a subsidiary in the future.

In the future, the two banks will promote further rationalization such as consolidation of stores and sharing of systems, and will maintain the two brands of Fukui Bank and Fukuho Bank.

In addition, Fukuho Bank plans to repay the public funds of 6 billion yen invested 12 years ago by the end of next year.

Fukui Bank aims to make Fukuho Bank a subsidiary by promoting rationalization and increasing profitability as the business environment of regional banks becomes more severe due to population decline, ultra-low interest rates, and the spread of infection with the new coronavirus. , The aim is to survive.

At a press conference, Fukui Bank President Masahiro Hayashi said, "We are facing structural problems such as long-term ultra-low interest rates and population decline, and in anticipation of continued spread of the new coronavirus infection, we will strengthen the financial base of both banks and compete. I want to win. "