Business Transfer of Hokkaido Takushoku Bank in Mainland Japan
February 17, 1998
Bank of Japan
- The resolution package of Hokkaido Takushoku Bank was announced on the 17th of November last year.At that time, an agreement was achieved to transfer the bank's sound assets and deposits placed within the island of Hokkaido to North Pacific Bank (Hokuyo Bank).In order to complete the resolution package, it was necessary to find a bank which assumes the rest of the business located in the mainland Japan at the earliest possible opportunity.
- Today, the Bank of Japan has been informed by Hokkaido Takushoku Bank and Chuo Trust and Banking Company that an agreement has been reached between the two banks as to the transfer of the mainland business of Hokkaido Takushoku to Chuo Trust.The two banks will soon begin discussions to work out the details of the business transfer.
The two banks aim at effecting the business transfer in autumn this year, simultaneously with the transfer of business in the island of Hokkaido to North Pacific Bank.
- Thus, sound assets and deposits held by Hokkaido Takushoku Bank in the mainland will be assumed by Chuo Trust and Banking Company.Chuo Trust intends to take this opportunity to reinforce the retail operations of its trust business as part of the efforts to prepare itself for the upcoming Big Bang.Chuo Trust is expected to hire a significant number of the employees of Hokkaido Takushoku Bank.
- Related parties, including the Deposit Insurance Corporation which will purchase assets including problem loans from Hokkaido Takushoku Bank and extend financial assistance, will discuss the details of the plan, such as the amount and type of assets assumed by each party.
The Bank of Japan, in cooperation with the Ministry of Finance, will continue to provide full support towards a smooth implementation of the planned business transfer of Hokkaido Takushoku Bank to the two banks.