Regional lenders Daishi Hokuetsu and Gunma to tie up amid consolidation wave

Regional banks Daishi Hokuetsu Financial Group and Gunma Bank are nearing a merger under a holding company, poised to become one of the nation's largest financial institutions as regional banking consolidates amid declining urban populations. The banks expect to announce the deal soon after their board meetings next Thursday, with stock prices rising following the news. Based in neighboring prefectures near Tokyo, they aim for an early 2027 merger, though their combined assets, valued at ¥21.4 trillion, are smaller than those of regional leaders Fukuoka Financial Group and Concordia Financial Group.