TOKYO -- The planned consolidation of three regional banks in greater Osaka highlights an increasingly harsh business environment and a pressing need to raise efficiency in Japan's shrinking market amid ultralow interest rates.
Resona Holdings and megabank Sumitomo Mitsui Financial Group are finalizing an arrangement to consolidate group regional banks -- SMFG's Kansai Urban Banking and Minato Bank, along with Resona's Kinki Osaka Bank. The three likely will come under a joint holding company, with Resona holding a majority stake.
