TOKYO, Sept. 17 (Xinhuanet) -- Japanese regional banks are nervously watching the recent surge in long-term interest rates, but its impact on their earnings may be limited due to rising stock prices, a top regional banker said here Wednesday.

　　"Since regional banks hold large bond portfolios, they are nervously monitoring such portfolios," Sadaaki Hirasawa, chairman of the Regional Banks Association of Japan, said at a press conference.

　　Hirasawa, who is also president of the Bank of Yokohama, said it is natural for interest rates to rise when the economy recovers.

　　"But we hope the rise would be more gradual. We think the authorities feel the same way too," he said.

　　Referring to the impact of long-term interest rate rises on regional banks' earnings for the half year to Sept. 30, Hirasawa said it may be limited as rising stock prices would have a positive impact.

　　"Stock prices are rising substantially, and each bank appears to remain calm," he said. Enditem