OSAKA -- The Osaka Prefectural Government announced Wednesday that 10 troubled credit unions in the prefecture will be rescued by transferring operations to three other credit unions and by creating a 100 billion yen fund.
The fund will help increase the self-owned capital ratio of the three enlarged unions.
The shaky credit unions are: Kawachi Credit Union, Daiwa Credit Union, Nippon Chochiku Credit Union, Taihei Credit Union, Credit Union Osaka Koyo, Howa Credit Union, Chugoku Credit Union, Fukujyu Credit Union, Kowa Credit Union and Osaka Towa Credit Union.
Deposits and loans of the 10 credit unions will be taken over by Seikyo Credit Union, Osaka Shomin Credit Union and Daido Credit Union. The transfer is expected to be completed by March.
In the meantime, the 10 troubled unions will continue normal operations, a prefectural official said.
As for the 100 billion yen fund, the prefectural government is considering contributing 30 billion yen while requesting 30 billion yen from the National Federation of Credit Cooperatives and 10 billion yen from Kofuku Bank, official said.