• Kyodo News


Shonai Bank and Hokuto Bank, regional banks based in the Tohoku region, said Thursday they are considering applying for an injection of public funds under a new financial stabilization law.

The law empowers the state to funnel public funds into regional lenders’ capital bases to facilitate the financing of small and midsize companies.

Three regionals — North Pacific Bank, Minami Nippon Bank and Fukuho Bank — have so far filed requests with the Financial Services Agency for the injection.

Meanwhile, Shonai Bank, based in Tsuruoka, Yamagata Prefecture, said Thursday it will move forward its management integration under a joint holding company with Hokuto Bank, headquartered in the city of Akita, to this October from April 2010.

Earlier synergy effects will enable the two banks to better improve their corporate value, Shonai Bank said.

The holding company will be called Fidea Holdings Co., the bank said. Fidea is a coined word combining the Latin word “fides,” which means trust, and the English word alliance.

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