• Kyodo News


Departing customers have taken out ¥29.1 billion from bankrupt Incubator Bank of Japan since it partially reopened last Monday, the Deposit Insurance Corp. of Japan said.

The troubled lender had ¥582 billion in deposits when it went under Sept. 10. The withdrawals account for around 5 percent of the total so far.

The bank received 7,883 account-closure applications at the 16 branches open through Thursday, the state-backed administrator said. The bank has 114 branches nationwide.

The bank is obligated to pay each depositor up to ¥10 million plus interest in accordance with the deposit protection scheme. But many customers who invested in time deposits at the bank have apparently decided to stay put to avoid losing interest as a penalty for withdrawing before the deposits reach maturity.

The bank said Friday that another 25 branches will resume business from Tuesday.

The bank was ordered in May to suspend some operations after breaching banking rules.

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