Editorial

14:46 JST, April 23, 2025

With the advent of a “world with interest rates,” new momentum is growing for the reorganization of regional banks. It is vital for them to strengthen the foundations of their management and play a solid role in supporting local economies.

The Bank of Japan raised its policy interest rate to around 0.5% in January, making it easier for financial institutions to make a profit from interest margins on loans, which are their core business.

As a result, competition for deposits, which are the source of loans, has intensified among financial institutions, and moves to raise deposit rates are spreading.

Under these circumstances, regional banks are on the defensive, as pure-play internet banks providing services through the internet, which have an advantage in terms of management costs, have gone on the offensive by offering higher........

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