The government may provide as much as 1 trillion yen to banks that agree to consolidate, according to a proposal outlined Thursday by the Financial Service Agency.
The FSA will request 1 trillion yen in the fiscal 2003 budget to give to regional financial institutions that consolidate.
In a report on proposals aimed at encouraging regional institutions to merge, the FSA also said it plans to raise the limit on its deposit guarantees for merged regional institutions for up to two years as an added incentive.