Choshi Shinkin Bank and Asahi Shinkin Bank have agreed to merge by the end of the year, creating a major financial institution in Chiba Prefecture with combined deposits of 500 billion yen, financial sources said Wednesday.
The two "shinkin" -- or credit -- banks, both based in the northeastern part of the prefecture, were to officially announce the merger plan in the afternoon, the sources said.
The banks, expecting fierce competition from other banks after the April 1 abolition of the full government guarantee on time deposits at failed banks, hope the merger will win them further trust from customers.