Fukuho Bank, a small regional bank in Fukui Prefecture, may seek an injection of public funds to the tune of several billion yen to make it easier to lend to small businesses amid the economic downturn, sources said Sunday.
The bank, based in the city of Fukui, is expected to receive the government funds in the coming months after consultations with the Financial Services Agency, the sources said.
The injection would be in line with a revised law designed to facilitate lending to small firms by bolstering the balance sheets of banks through fund injections. The law took effect in December.
Two other regional banks have said they are considering seeking public funds. They are North Pacific Bank, a unit of Sapporo Hokuyo Holdings Inc., and Minami Nippon Bank, based in the city of Kagoshima.