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Japan: Yokohama plans merger amid bank consolidation push

 |  November 4, 2014

Bank of Yokohama announced Tuesday that it is looking to merge with a smaller rival, a plan likely to be met with regulatory approval as authorities encourage consolidation.

The bank, Japan’s second-largest regional lender, said it is considering an acquisition of Higashi-Nippon; their merger would push Yokohama into the top spot of regional banks, though the companies noted that no deal has been decided.

While independently the deal is not considered a major transaction, reports say that Japanese authorities are encouraging consolidation in a highly saturated market. The nation is home to about 100 regional banks, and despite stable earnings, reports say the government warns that unless change is made, the industry could be headed for collapse.

Full content: Reuters

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