Tokuyo City Bank, suffering from the weight of 58.8 billion yen in nonperforming loans, effectively collapsed Wednesday.
It announced it will transfer operations to Sendai Bank after handing over some of its assets and liabilities to other financial institutions.
Tokuyo, a second-tier regional bank based in Sendai, is the fourth financial institution to go under this month; Sanyo Securities Co., Hokkaido Takushoku Bank and Yamaichi Securities Co. likewise bit the dust.