• SHARE

The Financial Reconstruction Commission approved a plan Thursday by Fuji Bank, Dai-Ichi Kangyo Bank and the Industrial Bank of Japan to set up a holding company as well as a plan by a Sakura Bank-led consortium to form an Internet bank.

Given approval by the governmental commission, Mizuho Holdings Inc., whose three member banks had faced difficulties in coordinating personnel affairs and bad-loan disposal, is to be launched Sept. 29.

It will be the world’s largest financial institution in terms of total assets.

Meanwhile, Japan Net Bank plans to start operations by the end of October, becoming the first entity in Japan to provide banking services solely through the Internet.

Sakura, one of Japan’s nine major commercial banks with nationwide branch networks, will own 50 percent of the bank, with the rest of the capital to be put up by firms such as Tokyo Electric Power Co., Fujitsu Ltd. and NTT DoCoMo Inc.

Mitsubishi outsiders

A holding company to be set up by the Bank of Tokyo-Mitsubishi and Mitsubishi Trust & Banking Corp. will have the presidents of two Mitsubishi group insurance companies as outside board members, financial sources said Thursday.

Kokei Higuchi, president of Tokio Marine & Fire Insurance Co., and Ryotaro Kaneko, president of Meiji Life Insurance Co., will assume the posts at Mitsubishi Tokyo Financial Group Inc., which is to be established next April, the sources said.

The Mitsubishi group banks have called on the two insurance companies to join the holding company.

NCB rehabilitation plan

Nippon Credit Bank, which made a fresh start under new owners earlier this week, submitted a plan Thursday to the Financial Reconstruction Commission to rehabilitate its finances and operations.

Under the plan, the reborn bank is expected to increase lending to startup ventures and expand its outstanding loans, which now total around 3.2 trillion yen, by 600 billion yen by March 31, 2004, bank officials said.

Its capital-adequacy ratio will rise to 13.43 percent as of March 31, after the government injects 260 billion yen in public funds to bolster NCB’s capital base.

NCB applied for the money Tuesday, and the government is expected to complete the injection in early October.

Speaking to reporters after filing the plan, NCB President Tadayo Honma said, “We hope to list the bank’s shares again and repay the public funds at an early time.”

NCB was nationalized in December 1998 after collapsing under the weight of bad loans extended during the asset-inflated bubble economy of the late 1980s.

The bank was sold to a consortium led by Internet investor Softbank Corp. last Friday. It opened for business Monday.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.

SUBSCRIBE NOW