Three complex factors to update the high price of regional bank stocks, are they also targeting the 2nd and 3rd largest banks in the prefecture, which are undervalued

It seems that at least three factors are a combination of at least three factors as a background to being preferred for regional bank stocks.
The first factor is that the yen tends to depreciateAvoiding the risk of exchange rate fluctuationsThat's it. The Nihon Keizai Shimbun dated 4th reports that overseas investors have begun to avoid the effects of exchange rate fluctuations and that searches for domestic demand stocks are increasing.
Furthermore, the Nihon Keizai Shimbun introduced comments from Japan Equity Fund Manager Toyota Kazuhiro of Schroder Investment Management, saying, “I think the possibility of a wage increase in 24 has also increased due to an increase in IT investment to improve productivity, and the probability of canceling zero interest rates in '24 has increased.” This is the second factor,Speculations about rising interest ratesSince then, it has been touched upon that evaluations of bank stocks where profit margins can be expected to expand are increasing.
As a third factor,Focus on value stocksAs stock prices have been sluggish until now, there seems to be a sense that regional bank stocks are undervalued as one reason. In particular, the PBR (stock price/net asset ratio) tends to be lower for the 2nd and 3rd largest stocks, which are not the prefecture-top regional banks, so it seems fair to say that there is a strong sense of undervaluation.

Regarding regional banks, a 10-year limited special law which exempts mergers and mergers between regional banks from the application of the Antimonopoly Law was enforced in 2020/11, so restructuring and integration within the same prefecture has also begun. Looking at future restructuring, there seems to be a strategy of daring to hold the 2nd and 3rd largest regional banks instead of the top regional banks in the prefectures.

Source: Nihon Keizai Shimbun, Moomoo