Regional banks Nishi-Nippon Bank and Fukuoka City Bank said Friday they have reached a basic agreement to integrate their business under a holding company next April.
The banks said they will establish a joint committee to hammer out details of the integration, which they hope will make them the No. 1 regional bank in Kyushu.
The new entity will boast assets of 7.22 trillion yen, surpassing the Bank of Fukuoka. It will also be one of the nation's largest regional banks.
The planned integration is the first to be announced in Japan's banking sector since the government lifted its protection of bank time deposits on April 1, a move that has prompted the reorganization of local and small institutions.