Regional banking group Jimoto Holdings, which has ailing regional lender Kirayaka Bank under its wing, has come under effective state control, with the government owning 63% of the holding firm's voting rights.

At a general shareholders meeting on Thursday, Jimoto Holdings, headquartered in Sendai, confirmed its suspension of dividends on preferred shares after reporting a consolidated net loss for the second consecutive year in the fiscal year to March 2024.

The red ink was mainly due to the deterioration of business at Kirayaka Bank, a second-tier regional bank based in Yamagata Prefecture.