Kohei Nakabo, departing president of Resolution and Collection Corp., vowed Thursday that the state-backed collection body will continue efforts to hold the banks that helped create the nation's bad-loan mess liable.
Nakabo, a high-profile lawyer who has also served as chairman of the Japan Association of Bar Federations, will resign from the post Monday -- his 70th birthday. He has appointed lawyer Akio Kioi as his successor.
Nakabo assumed the post of head of the semipublic Housing Loan Administration Corp. about three years ago and has reclaimed a huge amount of bad loans left behind by the seven failed "jusen" mortgage lenders.
HLAC merged in April with Resolution and Collection Bank, which was established by the government to handle the operations and loan collection of over 40 failed banks and credit unions.
Nakabo said the RCC is currently negotiating with four banks on how to get them to compensate for damages over their role in introducing dubious borrowers to the jusen. Of these, talks with two banks are in the final stages, he said. The RCC has said it is poised to sue them for damages if the negotiations fall through.
Asked why he is stepping down at this stage, Nakabo told reporters, "It is not appropriate for me to remain at this post simply because I can exert leadership of the agency."