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Major Japanese banks are competing for a slice of inherited savings worth nearly 60 trillion yen that are expected to flow out of regional lenders over the next 30 years.

Japan's big cities become magnets for inherited rural savings

Trend leaves key regional 'shinkin' lenders in tight spot

KENSUKE YUASA and SORA KITAJIMA, Nikkei staff writers | Japan

TOKYO -- Major Japanese banks are vying for an estimated 58 trillion yen ($377 billion) in inherited bank deposits that are expected to move out of regional lenders over the next 30 years. Large money-center banks are eager to expand their deposit bases as interest rates begin to rise again, but their efforts could deal a serious blow to their much smaller rural rivals.

"We now offer a higher interest rate to those depositing their inherited money in our time deposits," said an executive at a credit association, also known as a shinkin bank, in Nara prefecture. "We are trying to make sure the money does not go to megabanks."

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