The Financial Services Agency is mulling issuing business improvement orders to six banks that received public funds and announced poor earnings forecasts, sources said Monday.
The banks are Chuo Mitsui Trust Holdings Inc., Shinsei Bank, Aozora Bank, Chiba Kogyo Bank, Higashi Nippon Bank and Gifu Bank, the sources said. Shinsei and Aozora are currently engaged in management integration talks.
The banks are likely to miss their earnings targets by large margins for the business year that ended in March and could delay returning public funds as a result, the sources said.
The FSA orders banks in receipt of public funds to improve their business practices when their earnings figures such as net profit fall short of targets stated in their rehabilitation plans by 30 percent or more.