Bank of Japan (BOJ) Governor Haruhiko Kuroda attends a news conference at the BOJ headquarters in Tokyo, Japan October 31, 2018. REUTERS/Issei Kato
NAGOYA, Japan (Reuters) – Bank of Japan Governor Haruhiko Kuroda said on Monday mergers and consolidation were among the steps the country’s regional banks could take to survive an increasingly challenging business environment.
Regional banks could face challenges in the next five to 10 years as their core operating profits dwindle, Kuroda said.
“The problems they face are structural, so the measures they take must be structural too,” he told a news conference after meeting business leaders in Nagoya, central Japan.
“Mergers and integration could be among such steps,” as well as technical innovation and development of new business opportunities, he said.
Reporting by Leika Kihara; Editing by Chang-Ran Kim