Japan to offer subsidies for regional banks which merge
TOKYO (The HQ News) – Japan will offer subsidies to regional banks that merge with rivals as part of plans to encourage economic growth in regional areas, a draft of a stimulus package as per sources.
The proposed stimulus package also calls for a review of regulations that govern the scope of banks’ businesses, with an eye to spurring digitalisation.
Prime Minister Yoshihide Suga has pledged to support rural areas and their ailing lenders which have suffered from thin margins amid ultra-low interest rates and a dwindling population base.
The new measures would follow the Bank of Japan’s announcement last month that it will set up a scheme to pay interest of 0.1% to regional banks that consolidate or cut costs.