日本财务大臣敦促地区银行在加息环境中支持当地经济

Core Viewpoint - Japan's Finance Minister, Shunichi Suzuki, urges regional banks to take more measures to promote local economic development in the context of rising interest rates, emphasizing that without loans supporting local growth, rural areas will have no future [1][4]. Group 1: Economic Context - Japan's local economy has long been troubled by population decline and aging, with the severity far exceeding that of major cities like Tokyo [1][4]. - After decades of ultra-loose monetary policy, the Bank of Japan is gradually raising interest rates, but this may not be a panacea for regional banks facing weak deposit and loan demand [1][4]. Group 2: Banking Sector Challenges - The recent increase in the benchmark overnight rate to 0.75%, the highest in 30 years, has led to a significant rise in Japanese bank stocks due to market expectations of improved loan profitability [2][5]. - However, higher interest rates have intensified competition for deposits, posing risks to local banks that rely on these institutions for cheap funding [3][6]. Group 3: Government Initiatives - The Financial Services Agency recently released a document outlining measures to strengthen regional lending institutions, with one of the main pillars being the expansion of fiscal support to cover merger and integration costs [5]. - Suzuki stated that the government will not force regional banks to merge, emphasizing the need for sound investment in the system to achieve profitability [1][4].