Northeast Japan Banks Set for Merger to Boost Regional Presence

Three regional lenders in northeastern Japan, Procrea Holdings Inc., Bank of Iwate, and Akita Bank, have announced plans to combine their operations under a holding company. The merger is set to take place in April 2028, creating a new regional banking group that would rank around 10th in the country.

The banks aim to expand their operations across prefectural borders to strengthen their business foundations as they struggle with a shrinking market due to a declining population. As of March this year, Procrea had assets worth 5.8454 trillion yen, Bank of Iwate had assets worth 3.9137 trillion yen, and Akita Bank had assets worth 3.5768 trillion yen.

Bank of Iwate President Toru Iwayama stated that the banks face 'more diverse and complex' challenges, including the spread of artificial intelligence. The combined operations will be based in Morioka, the capital of Iwate Prefecture.