Three credit unions based in Kanagawa Prefecture effectively closed down Friday, with their operations expected to be transferred to three separate financial institutions by the end of next March.
Financial authorities said the prefectural government, which regulates credit unions, decided it would be difficult for the three credit unions -- Sagamihara Shinyo Kumiai, Kanagawa Shoko Shinyo Kumiai and Shonan Shinyo Kumiai -- to improve their operations on their own.
Sagamihara's healthy assets and deposits will be transferred to Yachiyo Bank in Tokyo; Kanagawa Shoko's operations will be moved to Kawasaki Shinkin Bank; and Atsugi Shinyo Kumiai will serve as caretaker for Shonan.
Deposit Insurance Corp. will provide financial assistance to the three credit unions, including the purchase of their nonperforming assets. Deposits at the credit unions as of the end of September stood at 100.1 billion yen for Sagamihara, 38.5 billion yen for Kanagawa Shoko and 28 billion yen for Shonan.
Meanwhile, two credit unions related to South Korean business funds in western Japan -- Yamaguchi Shogin in Yamaguchi Prefecture and Shimane Shogin in Shimane Prefecture -- said they will hand their operations over to their peer in Hiroshima Prefecture, Hiroshima Shogin.