Glitch hits new Tokyo regional bank on 1st day

May 1, 2018

Tokyo- A glitch disrupted part of services at Kiraboshi Bank on Tuesday, the very day when the Tokyo regional bank was established through the merger of three lenders.

Some money transfers using automated teller machines of former Yachiyo Bank, one of the three institutions, cannot be executed, Kiraboshi officials said.

The glitch is also preventing cash transfers to Yachiyo customer accounts from other banks, according to the officials.

On Tuesday, Tokyo TY Financial Group Inc., the parent holding company of the three predecessor banks, also including Tokyo Tomin Bank and ShinGinko Tokyo, was renamed Tokyo Kiraboshi Financial Group Inc. following the launch of Kiraboshi Bank.

At a time when the Japanese banking industry is facing a tough business environment amid prolonged low domestic interest rates, the creation of the new bank may further prompt realignment moves among lenders in the Japanese capital and its vicinity, industry sources said.

Kiraboshi ranks around 20th among regional banks across Japan, with its assets totaling 5.6 trillion yen.

The new bank hopes to improve its earnings by at least 12 billion yen a year by reducing the number of its branches by 30 pct and taking other measures.

"We aim to establish an earnings model" that will not be influenced by interest rate competition, Kiraboshi Bank President Hisanobu Watanabe told reporters on Tuesday.

Tokyo Tomin and Yachiyo set up Tokyo TY Financial in October 2014 to integrate their operations. ShinGinko Tokyo, which was established by the Tokyo metropolitan government, came under the wing of the holding firm in April 2016. Jiji Press