Regional banks welcomed another player to the sector Monday after two lenders in Kyushu merged to become Nishi-Nippon Financial Holdings Inc.
The Fukuoka-based company is the result of a tie-up between Nishi-Nippon City Bank and Bank of Nagasaki.
Regional banks nationwide are under pressure to consolidate as they compete for ever-fewer savers as the population shrinks.
Other newly created major banking groups in southwestern Japan include Fukuoka Financial Group Inc., Kyushu Financial Group Inc. and Yamaguchi Financial Group Inc.
With capital of ¥50 billion, Nishi-Nippon Financial may eventually join hands with other banks.
Nishi-Nippon City Bank President Hiromichi Tanigawa became president of the new holding company and Isao Kubota, its chairman, assumed the position of chairman.