Integration Of Three Regional Banks Across Prefectural Boundaries: Press Conference By KATAYAMA Satsuki, Japan Minister Of Finance And Minister Of State For Financial Services

I would like to ask two questions regarding reports that three regional banks in Aomori, Iwate, and Akita are in talks on a potential business integration. First, what is your reaction to the reports? Second, more generally, how do you view the prospect of a potential business integration involving three regional banks across prefectural boundaries?

I am aware of the reports, but as I do not believe the banks have made any specific announcement at this stage, I would refrain from commenting. More generally, amid an increasingly challenging business environment due to population decline and other factors, it is important for regional banks to contribute to local economies by fully utilizing their financial intermediation functions across a wide range of areas. We support regional banks through initiatives such as the formulation of regional financial strategies. The Financial Services Agency (FSA) will continue to encourage efforts by regional banks to pursue management reforms, not only through mergers and business integrations but through other initiatives as well.