Mizuho Trust & Banking Co., a member of Mizuho Financial Group Inc., has offered to repay another 50 billion yen portion of the public funds it received in 1998 to replenish its depleted capital base, the state-run Deposit Insurance Corp. said Tuesday.
The bank’s predecessor, Yasuda Trust & Banking Co., received a 150 billion yen injection into its capital accounts by issuing perpetual subordinated bonds to the DIC.
Earlier, Mizuho Trust reimbursed its first 50 billion yen portion to the DIC. The latest repayment is due Sept. 30.
An official in the bank’s management planning division said: “Our fundamental policy is to repay public funds as quickly as possible. We will determine our stance on this matter down the line, while taking into account the conditions surrounding our management.”
In 1998, the DIC funneled a total of 1.8 trillion yen into 21 banks on the basis of a temporary recapitalization law. The law was passed to stabilize the banking system after it was hit by the failures of Hokkaido Takushoku Bank, Yamaichi Securities Co. and other big financial institutions.
The recipient banks have so far repaid 840 billion yen.
In addition, the government has channeled a combined 8.6 trillion yen into the capital bases of 32 banks since March 1999 under a separate recapitalization law.