Japan's Financial Services Agency is planning to allow regional banks to close their branches on weekdays as part of its measures to support struggling banks.

The business situation surrounding financial institutions in Japan is becoming increasingly severe. Low interest rates are squeezing their profits, and fewer customers are visiting their branches as the population declines.

The agency currently allows financial institutions to close their outlets only on weekends, national holidays and several days at the year-end and the New Year.

Planned deregulation measures are aimed at helping them streamline their business and maintain their networks of branches.

Under the new rules being considered, banks will be able to alternately operate 2 branches in nearby areas on weekdays. This will allow staff members to work for both branches.

The agency aims to revise laws this year to implement such new rules.

It is also planning to allow financial institutions to set up joint branches to streamline their business.