Even in cases where financial institutions have excess assets, it becomes necessary to expand the business base and improve profitability through measures such as merger if they are not likely to survive on their own from a medium- to long-term perspective. As previously mentioned, although the number of financial institutions has already decreased substantially, further integration should not be ruled out if necessary.
While these aspects understandably have caused concerns, these concerns have become particularly heightened due to the state of the global financial system and macroeconomy. The banking system particularly in the advanced economies has to build up its capital and liquidity levels and Basel III is to be implemented, even when the macroeconomy is in an uncertain and depressed state.