Aozora, 2 regional banks in Ibaraki Pref. reach tie-up deal.

TOKYO, Aug. 20 Kyodo

Aozora Bank  said Thursday it and two Ibraki Prefecture-based local banks have agreed to cooperate on the marketing of a range of financial products including deposits and the provision of loans to corporate borrowers.

The accord was reached with Kanto Tsukuba Bank, based in Tsuchiura, and Ibaraki Bank, based in Mito, which are to merge next March 1 to form Tsukuba Bank. Aozora itself will merge with Shinsei Bank  in October 2010.

The deal calls for the two local lenders and Aozora to collaborate in the area of developing retail financial products and the business of revitalizing troubled nonfinancial companies.

The new cooperative arrangement is in line with Aozora's new strategy of placing greater emphasis on domestic banking operations in the aftermath of booking huge losses in connection with its overseas investments.

Both Aozora and Shinsei plan to follow a strategy of actively entering into cooperative arrangements with regional financial institutions.

Aozora said it is keen on cashing in on transactions with the new customer base it will gain on the basis of the deal with the two Ibaraki-based lenders, by marketing financial products it develops over the counters of the lenders.