"Aichi Bank" and "Chukyo Bank", which have their head offices in Nagoya City, announced that they have finally agreed to merge in October and establish "Aichi Financial Group" to bring both banks under their umbrella. bottom.

According to the announcement, the regional banks "Aichi Bank" and "Chukyo Bank" headquartered in Nagoya City decided to integrate their businesses based on the "basic agreement" in December last year at the board of directors meetings held on the 11th. , The final agreement has been reached.

Specifically, on October 3, the holding company "Aichi Financial Group" will be established to bring the two banks under its umbrella.

On top of that, the two banks will merge in about two years to further enhance the effectiveness of the merger.

In addition, Bank of Tokyo-Mitsubishi UFJ, a major bank that holds more than 39% of the shares of Chukyo Bank, plans to sell all of its shares to Chukyo Bank.

The balance of deposits after the integration is expected to reach 5 trillion yen, which will create one of the leading regional bank groups in the Tokai region.

In the Tokai region, last month, the Shizuoka Bank in Shizuoka Prefecture and the Bank of Nagoya in Aichi Prefecture agreed to form a business alliance in a wide range of fields, and the business environment of regional banks is severe due to prolonged low interest rates and a declining population. The competition is likely to intensify as the number of participants increases.