June 26, 1998 (Tentative Translation)

On the merger plan of the Sumitomo Trust and Banking Company, Ltd. and the Long-Term Credit Bank of Japan, Ltd.

1. 　　 The Financial Supervisory Agency ("the Agency") has been informed from both the Sumitomo Trust and Banking Company, Ltd. and the Long-Term Credit Bank of Japan, Ltd. ("LTCB") that they will start definitive deliberation towards a merger.

2. 　　 According to the banks, the planned merger aims at providing better financial services to customers through further streamlined operations, and thus playing a leading role in Japan's "Big Bang" initiative by taking advantage of the two banks' respective expertise as well as quality staff and customer base in commercial banking, trust business and investment banking.

　　 Furthermore, the Agency has been reported from the LTCB that it will restore the soundness of the assets and restructure its business thoroughly.

3. 　　 The Agency will follow the necessary procedures in accordance with relevant laws and regulations in due course. The Agency believes that this plan will be a pioneering merger in the coming reorganization of the financial industry towards the 21st century, since the plan concerns a merger between entities of different financial sectors and seeks a new type of financial institution utilizing significant funds and enjoying the strong business basis of the two banks. The Agency will highly esteem and welcome the plan as greatly conducive to the stabilization of the financial system with the support from the market as well as customers.

　　 Furthermore, taking account of recent developments in the markets, the Agency will inspect the LTCB as part of immediate inspection of the 19 major banks.

4. 　　 The Agency will take all possible measures for facilitating the realization of the plan in close cooperation with the Ministry of Finance and the Bank of Japan.

Return