OSAKA -- Tanabe Credit Cooperative and Chogin Osaka Credit Association Branch, two Osaka-based small financial institutions that are burdened with mounting bad loans, announced May 14 they will transfer their assets and operations to other financial institutions.
The Osaka Prefectural Government, which supervises the credit cooperatives, said Tanabe's deposits and assets will be transferred to Sakura Bank, its longtime business partner, and Tanabe will ask the Deposit Insurance Corp. to take over its nonperforming loans.
As for Chogin Osaka, whose customers are mainly Korean residents in Osaka, its deposits and assets will be taken over by Chogin Kinki, a new financial institution to be created as a result of mergers of five Chogin credit association branches based in Hyogo, Kyoto, Shiga, Nara and Wakayama prefectures. Tanabe's business transfer to Sakura and the creation of Chogin Kinki will be conducted as soon as possible, and before the end of next March, prefectural government officials said.