Chiba Bank and Chiba Kogyo Explore Business Integration

Chiba Bank and Chiba Kogyo Bank are close to a deal to merge their businesses. This could happen as soon as the end of this month, sources say.

The two banks are thinking about starting a holding company in or after April 2027. Both institutions would work under this new setup. The banks will keep their separate identities. They do not plan to merge. Sources said Thursday that this choice will keep things convenient for customers.

On Friday, Chiba Bank and Chiba Kogyo Bank said they are talking about a merger. But they emphasized that no final decisions have been made.

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Banks in Chiba Prefecture, east of Tokyo, are stepping up their efforts to grow. They face tough competition for deposits. Pressure has increased due to higher interest rates in Japan. This change has increased competition among financial institutions.
Chiba Bank made a big move this year. It bought a 19.9 percent stake in Chiba Kogyo Bank. The cost was about 23.7 billion yen, and the seller was Tokyo’s Ariake Capital. Since the March transaction, the two banks have looked for ways to work together more. They are also considering full-scale business integration.