Seven regional banks to invest in new asset management firm


Seven regional banks will jointly acquire a stake in an asset management company set up in August by Tokai Tokyo Financial Holdings Inc., informed sources said Friday.

The move will help the banks achieve greater economies of scale in asset management at a time when they are facing an increasingly severe business environment due to the Bank of Japan’s negative interest rate policy.

Specifically, the banks will be allowed to diversify fund management by investing in securitized products, foreign bonds and financial instruments that a single regional bank faces difficulty handling on its own.

The seven banks are Yamaguchi Financial Group Inc., Nishi-Nippon City Bank, Hiroshima Bank, Juroku Bank, San-in Godo Bank, Akita Bank and Yamagata Bank.

The seven banks and the government-backed Development Bank of Japan will each invest ¥100 million in the asset management firm, All Nippon Asset Management.

Yo Takeuchi, former director-general of the Finance Ministry’s Customs and Tariff Bureau, serves as president of the asset management company scheduled to start operations next month.