(Material #3)
（provisional translation)
The Viewpoint on the Write-offs and Allowances in Association with the Capital Injection
Financial Reconstruction Commission
January 25, 1999
We need to restore international confidence in the Japanese financial system by taking the opportunity of the banks' capital injection through disposition of non-performing assets at the largest banks, and through preparing sufficient buffer for uncertain financial environment in the future. Based on such a standpoint, we expect internationally active banks to make provisioning for non-performing assets at the following ratio, together with the rigorous assessment of asset quality, provided that the banks are to apply for the capital injection.
(provisional translation)
Basic policy for dividend yield of preferred stock
Financial Reconstruction Commission
The setting of the dividend yield of preferred stock issued by
financial institutions in accordance with the Financial Function Early Strengthening Law
shall be carried out with the basic policies below:
| I | Dividend yields should be based on market rates that could be assumed with restoration
of confidence in the Japanese financial system. For setting of dividend yields, the aim of
the Law, which is restoring both domestic and overseas confidence in the financial system,
through the conscious efforts for reestablishing sound management by each financial
institution － such as forward-looking business reconstruction, promoting non-performing
loan disposal, and smoother credit extention － is to be considered. |
| II | The lowering of credit risk of a financial institution shall be reflected in the
dividend yield, according to the expectations of non-performing loan disposal and future
improvement on financial and management conditions brought about by the business
restructuring under the plan for restoring sound management . |
| III | Difference in the characteristics of instruments should be adjusted according to the valuation by market, of the capital nature of each preferred stock. |
(Material #5)
| Size of capital consolidation |
（\ 100 million） |
. |
Amount of public capital |
Planned amount of |
Total amount of |
||||
total |
total |
||||||
IBJ |
Preferred stock |
3,500 |
6,000 |
Stock |
670 |
3,180 |
9,180 |
Subordinated bond |
2,500 |
Other instruments |
2,510 |
||||
Daiichi-kangyo |
Preferred stock |
7,000 |
9,000 |
－ |
－ |
9,000 |
|
Subordinated loan |
2,000 |
||||||
Sakura |
Preferred stock |
8,000 |
8,000 |
Stock |
862 |
3,450 |
11,450 |
Other instruments |
2,588 |
||||||
Fuji |
Preferred stock |
8,000 |
10,000 |
Stock |
2,170 |
2,170 |
12,170 |
Subordinated bond |
2,000 |
||||||
Sumitomo |
Preferred stock |
5,010 |
5,010 |
Other instruments |
3,400 |
3,400 |
8,410 |
Daiwa |
Preferred stock |
4,080 |
4,080 |
Stock |
522 |
522 |
4,602 |
Sanwa |
Preferred stock |
6,000 |
7,000 |
Other instruments |
1,800 |
1,800 |
8,800 |
Subordinated bond |
1,000 |
||||||
Tokai |
Preferred stock |
6,000 |
6,000 |
Stock |
1,000 |
1,000 |
7,000 |
Asahi |
Preferred stock |
4,000 |
5,000 |
Stock |
1,448 |
1,448 |
6,448 |
Subordinated loan |
1,000 |
||||||
Yokohama |
Preferred stock |
1,000 |
2,000 |
－ |
－ |
2,000 |
|
Subordinated loan |
1,000 |
||||||
Mitsui Trust |
Preferred stock |
2,502 |
4,002 |
Stock |
275 |
275 |
5,112 |
Subordinated loan |
1,500 |
※835 |
※835 |
||||
Mitsubishi Trust |
Preferred stock |
2,000 |
3,000 |
－ |
－ |
3,000 |
|
Subordinated bond |
1,000 |
||||||
Sumitomo Trust |
Preferred stock |
1,000 |
2,000 |
Stock |
※900 |
※900 |
3,730 |
Subordinated bond |
1,000 |
Other instruments |
830 |
830 |
|||
Toyo Trust |
Preferred stock |
2,000 |
2,000 |
Stock |
1,000 |
1,000 |
3,000 |
Chuo Trust |
Preferred stock |
1,500 |
1,500 |
Stock |
375 |
717 |
2,217 |
Other instruments |
342 |
||||||
Total |
Preferred stock |
61,592 |
74,592 |
Stock |
10,057 |
21,527 |
96,119 |
Subordinated
bond |
13,000 |
Other instruments |
11,470 |
||||
| ※ Conversion of convertible bond |
(Material #6)
Equity capital of the applicant banks (including the injected public funds. At the end of March, 1999 (expected)) |
|
| . | Tierl I |
Tierl II |
Total
equity capital |
Total risk assets |
A/B |
|||
| . | public funds |
. | public funds |
. | public funds |
|||
IBJ |
17,941 |
3,500 |
15,039 |
2,500 |
32,980 |
6,000 |
295,810 |
11.1 |
Daiichi-kangyo |
20,728 |
7,000 |
19,493 |
2,000 |
40,221 |
9,000 |
375,656 |
10.7 |
Sakura |
23,645 |
8,000 |
17,656 |
41,301 |
8,000 |
340,000 |
12.1 |
|
Fuji |
23,280 |
8,000 |
22,870 |
2,000 |
46,110 |
10,000 |
434,500 |
10.6 |
Sumitomo |
22,093 |
5,010 |
20,545 |
42,638 |
5,010 |
415,000 |
10.3 |
|
Daiwa |
8,677 |
4,080 |
5,288 |
13,966 |
4,080 |
105,000 |
13.3 |
|
Sanwa |
21,813 |
6,000 |
18,205 |
1,000 |
40,018 |
7,000 |
370,000 |
10.8 |
Tokai |
15,700 |
6,000 |
10,170 |
25,870 |
6,000 |
213,000 |
12.1 |
|
Asahi |
12,312 |
4,000 |
10,987 |
1,000 |
23,299 |
5,000 |
203,623 |
11.4 |
Yokohama |
3,732 |
1,000 |
3,984 |
1,000 |
7,464 |
2,000 |
78,700 |
9.5 |
Mitsui Trust |
7,127 |
2,502 |
4,760 |
1,500 |
11,887 |
4,002 |
78,870 |
15.1 |
Mitsubishi Trust |
7,599 |
2,000 |
5,702 |
1,000 |
13,301 |
3,000 |
127,091 |
10.5 |
Sumitomo Trust |
7,580 |
1,000 |
5,530 |
1,000 |
13,110 |
2,000 |
107,000 |
12.3 |
Toyo Trust |
5,408 |
2,000 |
3,327 |
8,735 |
2,000 |
60,997 |
14.3 |
|
Chuo Trust |
3,566 |
1,500 |
1,742 |
5,308 |
1,500 |
39,270 |
13.5 |
|
Total |
61,592 |
13,000 |
74,592 |
|||||
| (Note) Figures for Fuji include those for Yasuda Trust. |
