1. Today the Prime Minister decided, after taking necessary administrative process, to place the Nippon Credit Bank, Limited (the Bank) under special public management (temporary nationalization), based on the result of the financial inspection by the Financial Supervisory Agency (the Agency); in accordance with Article 36 of “the Law Concerning Emergency Measures for the Revitalization of the Functions of the Financial System.”
   
   
2. While the nationalized bank will continue its normal operations, I have issued to the Bank a management improvement order based on Article 26 of the Banking Law, with a view to prevent the deterioration of the quality of the Bank's assets. Thus, the Bank is required to manage its business in a sound manner.
   
   
3. Furthermore, considering the timing of the decision being made at the year-end, when there is a great demand for funds, the Agency, in collaboration with the Ministry of Finance and other related ministries as well as the Bank of Japan, will take necessary measures to prevent recurrence of financial system instability and credit contraction.
   
   
4. Meanwhile, the Agency intends to explain fully, in collaboration with the Ministry of Finance and the Bank of Japan, the contents of this decision on the temporary nationalization of the Bank to overseas supervisory counterparts, so that the market participants at home and abroad will accurately understand the decision.
   
   
5. The Agency will make use of its supervisory power in an appropriate manner through the strengthening of on-site inspection and off-site monitoring; strict enforcement of the Prompt Corrective Action, etc. With these efforts, the Agency intends to expeditiously strengthen the Japanese financial system by ensuring sound management of individual financial institutions. The Agency will thereby make its utmost efforts to protect depositors and others; to maintain orderly financial and payment system; and to stabilize the financial markets at home and abroad.

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