The federation of “shinkumi” credit cooperatives has developed a scheme to recapitalize co-ops whose capital to assets ratios fall below the “soundness threshold” of 4 percent, federation officials said Friday.

The scheme is designed to enhance the creditworthiness of credit cooperatives and prevent deposits from flowing out of them after the government cuts its protection of bank deposits in April, officials at the federation, Shinkumi Federation Bank, said.

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