Have you even been to Fukuoka?
(COMTEX) B: 2 banks to cancel deals with Fukuoka City Bank
FUKUOKA, Apr 19, 2002 (Kyodo via COMTEX) -- The Bank of Fukuoka and Hiroshima
Bank said Friday they will call off their agreement with Fukuoka City Bank to
link the three banks' computerized banking systems.
The decision to cancel the deal follows an announcement earlier in the day by
Fukuoka City Bank and Nishi-Nippon Bank that they have agreed to integrate their
operations under a holding company in April 2003.
Kiyoshi Teramoto, president of the Bank of Fukuoka, based in the city of Fukuoka
and the largest regional bank in Japan's main southwestern island of Kyushu,
said that although the merger deal "will create a formidable rival, we can fully
cope with it as we lead in financial health and earnings."
The Bank of Fukuoka is developing a new computer system at a cost of 13 billion
yen. The cost was estimated to be cut by around 5% through the aborted tie-up
with Fukuoka City Bank, but Teramoto said the cost increase can be covered by
cuts in other expenses.
In addition to the computer linkage agreement, the Bank of Fukuoka will cancel
other deals with Fukuoka City Bank such as mutual setting of commitment lines.
In Hiroshima, Masao Tokunaga, senior managing director of Hiroshima Bank, said,
"We were surprised" by the merger accord. "There may be various strategies under
the current financial circumstances," he added.
The integration of operations by Fukuoka City Bank and Nishi-Nippon Bank, both
based in Fukuoka, will make them the top regional bank in Kyushu with assets of
7.22 trillion yen and outstanding deposits of 6.39 trillion yen, the two banks
said.
2002 Kyodo News (c) Established 1945
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KEYWORD: FUKUOKA
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