Two Shinkin banks in Tokyo's Adachi Ward and Katsushika Ward have officially announced that they have agreed to merge next year in 2025.
This is the first time in 19 years that a Shinkin Bank has merged in Tokyo, taking into account future population declines.
According to an announcement, Adachi Seiwa Shinkin Bank, whose head office is located in Adachi Ward, and Toei Shinkin Bank, whose head office is located in neighboring Katsushika Ward, have agreed to merge by October next year.
Adachi Seiwa Shinkin Bank was established in 1923, and has 23 branches and deposits of 570 billion yen, making it the 16th among the 23 Shinkin Banks in Tokyo.
On the other hand, Toei Shinkin Bank was established in 1939, has 10 branches, and has the smallest amount of deposits among Shinkin banks in Tokyo at 140 billion yen.
Their main customers are individual stores and small and medium-sized enterprises, but in addition to sluggish growth in lending profits due to prolonged low interest rates and an outflow of deposits to major banks, the issue is how to deal with future population declines. The aim is to strengthen the management base through the merger, review store functions and strengthen support for businesses.
The new name after the merger is expected to be decided through public recruitment from staff.
If this happens, it will be the first merger of Shinkin banks in Tokyo in about 19 years since three Shinkin banks became Tama Shinkin Bank in 2006.
Even in Tokyo, where the population is concentrated and business activities are active, there are moves to reorganize in order to survive, and the trends of the more than 250 Shinkin Banks nationwide are attracting attention.