As the business environment of regional financial institutions such as regional banks becomes more severe due to the effects of the new coronavirus, the Bank of Japan will implement a new system to financially support the strengthening of the management base of regional financial institutions on March 1. Announced that it will start from the day.
This system is intended for regional financial institutions that strengthen their management base through cost reductions and business integration, with the BOJ adding 0.1% annually to the interest rate of current deposits deposited with the BOJ by regional banks.
The system will start on March 1st and will be a three-year time limit until 2022.
The Bank of Japan wants to support efforts to strengthen the management base of regional financial institutions, whose 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.
Regarding regional financial institutions, the government also plans to establish a new system to support part of the expenses in the event of a merger or business integration.
The focus will also be on whether or not the reorganization to strengthen the management base will actually proceed as the government and the Bank of Japan take steps that can be said to be unusual in terms of financial support for business integration.