Fifteen major banks applied Thursday for 7.46 trillion yen in public funds to ease the weight of bad loans.

The Financial Reconstruction Commission is expected to approve the applications next Friday and inject new capital into the banks by March 31.

The eight applying commercial banks, which have nationwide networks, are Asahi Bank, Dai-Ichi Kangyo Bank, Daiwa Bank, Fuji Bank, Sakura Bank, Sanwa Bank, Sumitomo Bank and Tokai Bank.

The five trust banks are Chuo Trust & Banking Co., Mitsubishi Trust & Banking Corp., Mitsui Trust & Banking Co., Sumitomo Trust & Banking Co. and Toyo Trust & Banking Co.

The remaining two are the Industrial Bank of Japan, the sole remaining privately held long-term credit bank, and Bank of Yokohama, Japan's largest regional bank.

Of the applicants, Fuji Bank applied for the largest amount, at 1 trillion yen, and Chuo Trust requested the least at 150 billion yen. Chuo Trust initially planned to apply for 200 billion yen but reduced the amount following its decision to merge with Mitsui Trust in April 2000. Meanwhile, Mitsui Trust increased its application amount from 350 billion yen to 400.2 billion yen.

Before deciding on recapitalization conditions for individual banks, the FRC will interview the presidents Monday and apply pressure to expand restructuring programs. In addition to public money, the 15 banks plan to raise a total of 1.7 trillion yen from the market and other companies through third-party allotment of new stocks.

Under the government's bailout scheme enacted last October, 25 trillion yen in public funds has been set aside to recapitalize banks whose coffers have been depleted by bad-loan writeoffs.

The applications Thursday follow the FRC's preliminary approval Feb. 12 for the banks to get public money under the recapitalization scheme. The 15 banks submitted plans for restructuring and profitability improvements when filing for the assistance.

The government's capital infusion will take the form of purchases of preferred stocks and taking out subordinated loans or debentures. The FRC will determine recapitalization conditions such as dividend rates based on a bank's profitability prospects and type of stocks they will issue.