Kokumin Bank, which was declared insolvent Sunday, had a 71.2 billion yen capital deficit as of Sept. 30, 1998, the Financial Supervisory Agency revealed Monday.
The Tokyo-based second-tier regional bank had underestimated the amount needed to write off its bad loans by 76.2 billion yen while its net worth amounted to only 5 billion yen, the FSA said.
The capital deficit will total 77.7 billion yen if 6.5 billion yen in latent losses -- including those for its holdings of stocks and bonds -- are included, it said.