Half of Japan's regional banks reported lower net income for the second quarter of this year. That is according to an analysis of earnings by an investment advisory company for financial institutions.

Japan Asset Management Platform Group says net profit for the April-June period fell at 49 regional banks out of a total of 98.

The company said net income decreased as the banks posted provisions for bad loans.

Loan repayments start this summer for many struggling small and medium-sized companies that borrowed interest-free and unsecured loans designed to help them cope with the impact of the coronavirus pandemic.

Rising interest rates in the United States have also put pressure on some regional banks' earnings and forced them to sell bonds at a loss.