Iyo Bank and Ehime Bank to Merge, Forming Japan's 13th Largest Regional Banking Group

Iyo Gin Holding and its subsidiary Iyo Bank reached a basic agreement with Ehime Bank to integrate their operations. The two banks plan to complete the merger by April 1 2027 through a share‑exchange, placing Iyo Bank under the holding while retaining Ehime Bank as a subsidiary. Combined, their total assets amount to roughly ¥12.6 trillion, which would rank the new entity as the 13th largest regional banking group in Japan, surpassing nearby Hirosaki and Chubu banking groups.

The integration is driven by severe demographic decline in Ehime Prefecture, where the population is projected to fall from 1.26 million to about 650,000 by 2060. Both banks cite shrinking personal deposits and competition from digital‑banking platforms as key pressures. The planned structure will operate as a "single‑platform, multi‑brand" system, keeping both brand identities while sharing back‑office functions. The merger may qualify for a special exemption under Japan’s antitrust law that facilitates regional bank consolidations. Future steps could include a full legal merger, depending on evolving market conditions.