Asahi Bank to take over ailing credit union's assets

Asahi Bank announced Monday that it plans to take over the healthy assets and deposits of ailing credit union Seibu Shinyo Kumiai.

Seibu Shinyo Kumiai, based in Kawagoe, Saitama Prefecture, had 21.9 billion yen in deposits as of the end of March. The firm said later Monday that the Asahi takeover is expected next spring.

Asahi Bank said the prefectural government called upon it to help after it became clear that the credit union would be unable to restructure on its own. Asahi decided to cooperate to help maintain financial stability in the local economy, it said. While the timing of the transfer is not finalized, the Deposit Insurance Corp. is expected to purchase the credit union's nonperforming assets.