2003.6.10
Financial Services Agency

Determination on the Recapitalization of the Resona Bank, Ltd
(Provisional Translation)

1. Determination on the Recapitalization

On May 30, 2003, the Resona Bank, Ltd made an application stipulated in the Article 105.1 of the Deposit Insurance Law for the measure (recapitalization) under　the Article 102.1.(1) of this Law, and submitted a plan for restoring soundness of management (business revitalization plan) based upon the Article 105.2 of the law.

Since the contents of this application and the business revitalization plan fulfilled the requirements mentioned in the Article 105.3 of the Deposit Insurance Law as a result of an assessment of them, the Financial Services Agency (FSA), today, determined to recapitalize the Resona Bank. Also, based upon the Article 106.1 of the law, the FSA required the bank to reduce its capital to compensate for losses carried forward as a condition for implementing this recapitalization.

2. Amount and Modalities of the Recapitalization

With regard to the amount of recapitalization, a view was expressed that ''it is necessary to ensure its capital adequacy ratio well in excess of 10 percent in order not to raise concerns of depositors, customers and markets.'' in the report of the Financial System Management Council on May 17. Based on the report, the amount of recapitalization is to be 1,960 billion yen in accordance with the application from the Resona Bank. It is estimated that the consolidated capital adequacy ratio of the Resona Bank will rise to approximately 12.2 percent.

The stocks of the Resona Bank to be acquired by the Deposit Insurance Corporation will be converted to those of the Resona Holdings, Inc by stock exchanges, and the content is a combination of common stocks (5.7 billion stocks, 296.4 billion yen) and voting preferred stocks (8.32 billion stocks, 1,663.6 billion yen) as described in the attachment. It is estimated that the ratio of voting rights held by the Government will exceed 70 percent by this action.

3. Business Revitalization Plan

The business revitalization plan is separately announced. The FSA will require the bank to report the progress of the plan and will publish it, based upon the Article 108.2 of the Deposit Insurance Law.

4. Reduction of Capital

As the Resona Bank held a large amount of losses carried forward at the account settlement of March, 2003, the bank is required to reduce its capital as a condition for the recapitalization, based upon the Article 106.1 of the Deposit Insurance Law.

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[Attachment]

Amount and Modalities of Recapitalization (After Stock Exchanges)

1. Amount of Recapitalization

1,960 billion yen

(Common stocks      296.4 billion yen)

(Preferred stocks   1,663.6 billion yen)

2. Modalities of Recapitalization