Kyodo News report that The Aomori Bank, Ltd. (TSE:8342) and regional peer The Michinoku Bank, Ltd. (TSE:8350) are in talks to merge their operations. The banks say while they have been in talks for comprehensive operational tie-ups, they aren't having the discussion on the premise of merging their operations. Speculation for mergers of Japanese regional banks may continue.

Japan's Chief Cabinet Secretary Yoshihide Suga, the front-runner in the race to succeed Prime Minister Shinzo Abe, said last week that there are too many regional banks in Japan.