FinanceChina branch numbers fall 20% in 5 years while big banks also see loan slumpBank of Kyoto closed its Dalian office last year and consolidated operations in Shanghai amid a decline in customer needs. (Photo by Atsushi Ooka)RINANO KATSUJune 3, 2026 02:03 JSTTOKYO -- Japan's regional banks are leaving China for Southeast Asia and India due to rising labor costs and the struggles of Japanese manufacturers, creating headwinds for the China strategies of Japan's suppliers and other regional companies.