The merger plans of two midsize Japanese lenders have been terminated, says the Wall Street Journal.
The Journal reports that Aozora Bank Ltd. and Shinsei Bank Ltd. have revealed they are "considering a new business alliance, without giving details."
The merger plans have, from the start, been in danger of collapsing as the banks have differed over which strategy the combined entity should pursue. The Journal earlier reported that Aozora wanted stronger ties with regional banks while Shinsei strongly favored using retail deposits to fund its push into consumer finance.
Regulators have also been worried about a mismanaged merger and want to avoid one full of conflict, where the banks only partially merge and fight internally.