Aozora Bank said Wednesday that it intends to form an alliance with Hokkaido Bank, a unit of Hokuhoku Financial Group Inc., to expand lending to farmers and agriculture businesses in Hokkaido.
The banks' joint services will include a new lending scheme that will accept farm produce as collateral, and syndicated loans for Hokkaido Bank clients, Aozora said.
The deal between the two banks will be officially announced Thursday.
Aozora will tap its nationwide clients, including food processors and supermarket operators, to bring them closer to farmers so they can promote the marketing of produce and the development of new agricultural products.