Event: Daiwa Securities Group

Daiwa Securities Group will integrate its Daiwa Next Bank unit with Orix Bank, seeking a "virtuous cycle” of deposit and loan growth. | Bloomberg Daiwa Securities Group will buy Orix's banking unit for ¥370 billion ($2.3 billion), its largest acquisition in almost two decades, as Japan's second-biggest brokerage deepens its foray into commercial lending.The Tokyo-based firm will finance the purchase of Orix Bank with its own funds, it said in a statement on Monday. Shares of Daiwa fell as much as 6.9% on Tuesday morning in Tokyo, while Orix jumped 12%.The deal comes two years after Daiwa built a stake in Aozora Bank to become its biggest shareholder. Lending has become a more attractive business in Japan in recent years as inflation returns to the economy, leading to higher interest rates and loan profitability. The trend has also begun to fuel competition for deposits, which are a relatively cheap form of funding. In a time of both misinformation and too much information, quality journalism is more crucial than ever.By subscribing, you can help us get the story right. SUBSCRIBE NOW