地方再生、地銀・企業再編で強く

Strong in regional revitalization, regional banks and corporate restructuring

It is difficult to maintain the current situation considering the population structure" (Financial Minister Taro Aso), "Integration and cooperation are naturally options" (Bank of Japan Governor Haruhiko Kuroda). The reason why the respondents responded one after another is that although the regional banks play a large role in the regional revitalization that the prime minister puts up as a pillar, the current situation is uncertain.

The consolidated net income of 78 listed regional banks and groups has decreased for the fourth consecutive year until FY03 / 2020. As much as 40% of the profit and loss of the main business is in the red. Regional banks occupy 7 of the 10 worst PBR (price-to-book value ratio) listed companies on the First Section of the Tokyo Stock Exchange. Yamanashi Chuo Bank and Tochigi Bank, which are at the bottom, are in a state where they can be acquired with 13% of their net assets, which is calculated to be 0.13 times. There are 102 regional banks in Japan, and only 4 have decreased in 10 years.

Many regional banks are particular about being independent of the pride of local celebrities. Isn't waste preserved as the rigor increases? From within the industry, there is a voice saying, "Traditional business centered on lending would be overbanking (too many)" (Yasuyoshi Oya, Chairman of the Regional Banks Association of Japan).

In November, the special merger law will be enforced, which will open the way for the reorganization of regional banks in the same prefecture. The Financial Function Enhancement Law, which is a framework for injecting public funds, has also been revised to make it easier to use in response to the new coronavirus. The prime minister mentions not only regional banks but also the restructuring of SMEs. If small and medium-sized businesses do not improve, regional banks' profits will continue to be sluggish. If the two wheels, the regional banks and small and medium-sized enterprises, collapse together, the local economy will fall into crisis. A leading alumnus of the Financial Services Agency sees Mr. Suga's remark as "a message to think about how to treat the local economy in a sustainable manner."

The government will support small and medium-sized financing that has been hit by the Corona disaster. For the time being, it's no wonder that constant support is essential. However, "Mr. Suga is thinking about further support in order to really train small and medium-sized legs," said an executive of the economic government.

Source: https://www.nikkei.com/article/DGXMZO64097720Q0A920C2MM8000/