The Long-Term Credit Bank of Japan, suffering a battering in the market over its financial problems, seeks to merge with Sumitomo Trust & Banking Co. in what is largely seen as its de facto absorption, industry sources said Friday.
The LTCB's massive nonperforming loans, coupled with its plummeting stock price, led management to give up restructuring efforts and instead find outside help, they said.
If brought about, it would be the first merger between a long-term credit bank and a trust bank in Japan. The presidents of the two banks were to hold separate news conferences late Friday night regarding media reports of the proposed merger.