Two core regional maritime specialist banks in Japan have announced a merger, with the combined group’s total lending to the shipping and maritime sector set to exceed ¥2.1 trillion (approximately $12.8 billion).

Iyogin Holdings and Ehime Bank, both headquartered in Matsuyama, Japan, signed a basic business integration agreement on July 24. The transaction is subject to shareholder votes and regulatory approvals, and is scheduled to take effect on April 1 of the following year (2027).

Under the proposed integration plan, the merged banks will have total assets of about ¥12.6 trillion. The two institutions will combine through a share swap, with Iyogin Holdings as the parent company and Ehime Bank becoming its wholly owned subsidiary. A unified back-office platform will be established, while the two independent brands—Iyogin Bank and Ehime Bank—will continue to operate separately.

The merger carries significant implications for Japan’s shipping industry: Iyogin Holdings has approximately ¥1.6 trillion in outstanding loans to shipping companies, accounting for one-quarter of its total credit assets, while Ehime Bank’s shipping credit portfolio stands at about ¥500 billion.

Although the two banks use slightly different accounting and statistical methodologies, their combined shipping credit assets will total more than ¥2.1 trillion after the merger.

According to the merger presentation materials, Iyogin is Japan’s third-largest ship finance bank and ranks 10th globally; Ehime Bank ranks 12th in Japan and 37th worldwide in ship finance. Both banks are deeply rooted in the maritime industrial cluster of Ehime Prefecture, with a vast concentration of Japanese shipowners, shipbuilders, and marine equipment suppliers around the city of Imabari. The two institutions have long provided in-depth services to the local shipping ecosystem.