Japan's Mizuho Financial Group Inc. is set to merge its U.S. banking and trust banking businesses as early as before the year-end, The Nikkei reported, without citing a source.

The group is likely to obtain approval from U.S. regulators for the move as early as November. Under the plan, the group is seeking to merge its banking operations, such as lending and foreign exchange, with the asset management functions of a trust bank at Mizuho Bank (USA). The move will also involve combining indirect operations, including financing and IT.

The report came after Mizuho Bank (USA) in September received approval in New York to merge with its sister bank, Mizuho Trust & Banking Co. (USA).

Mizuho Financial's U.S. businesses currently operate under holding company Mizuho Americas LLC, which was set up in July 2016 in response to the Federal Reserve's enhanced prudential standards rule.

The merger would remove redundant roles and gradually reduce the group's 50 or so back-office staff in its U.S. trust banking unit. Some of the employees will be transferred to sales as part of the group's efforts to expand its U.S. capital markets business.

In addition, the merger is expected to improve efficiency and reduce compliance costs related to stricter U.S. risk management regulations.