Statement by the Governor concerning the Chogin Kinki Credit Cooperative
December 29, 2000
Bank of Japan
- We have today been informed by the Financial Reconstruction Commission that it has placed the Chogin Kinki Credit Cooperative under the management by the "Financial Reorganization Administrators"* pursuant to the "Law concerning Emergency Measures for the Reconstruction of the Function of the Financial System".
We have also received a request from the Financial Reconstruction Commission and the Finance Minister, pursuant to Article 38 of the Bank of Japan Law, to provide necessary funds in case of a shortage at the credit cooperative for the continuation of its business including the repayment of deposits, as it has been especially judged necessary to maintain financial system stability.
- Since the credit cooperative will continue its normal operations, the Financial Reorganization Administrators will manage not only the financial institution's properties but also its business unlike a trustee in the corporate reorganization procedure.
- Upon this request, the Bank of Japan has decided at today's Policy Board meeting to provide necessary funds to the Chogin Kinki Credit Cooperative through the Shinkumi Federation Bank for the continuation of its business until the management by the Financial Reorganization Administrators is concluded.
- The Chogin Kinki Credit Cooperative will carry out appropriate operations under the management of the Financial Reorganization Administrators and will seek to transfer its business promptly to receiving financial institution(s) with financial assistance from the Deposit Insurance Corporation of Japan.
- Through these measures, the Chogin Kinki Credit Cooperative will continue normal operations, and all of the financial institution's obligations, including deposits, will be performed smoothly. The Bank of Japan considers that protection of depositors and others, and stability of the financial system will thus be ensured.