Press Conference by SUZUKI Shunichi, Minister of Finance and Minister of State for Financial Services

(Excerpt)

(Friday, December 3, 2021, 11:05 am to 11:16 am)

[Questions and answers:]

Q.

It was revealed that Aichi Bank and Chukyo Bank are considering integrating their management. What is your thought on this?

A.

I know the news coverage that Aichi Bank and Chukyo Bank are considering integrating their management. Business alliance or management integration are individual companies' business decisions, and I refrain from making any comments on such matters. However, generally speaking, it is very important that regional banks make efforts to reform management toward the future based on their own business decisions and thereby strengthen their financial functions and enhance corporate value. The FSA would follow up such efforts by individual banks.

Q.

One more related question. Former Prime Minister Suga was aware that the number of regional banks is too large and that awareness led to the creation of the scheme to grant funds for regional banks that will drastically improve their business efficiency through measures such as mergers and the establishment of a joint holding company. What do you think of the number of banks?

A.

Regarding regional banks, what matters is not whether the number of the banks is large or not but how financial functions should be maintained sustainably in respective regions. I think it more significant that financial functions are maintained in the regions through the management integration and other efforts, which should of course be based on individual banks' own decisions.