(Provisional translation) April 11, 1999 Financial Supervisory Agency The Government of Japan |
Statement by the Commissioner |
― On the Kokumin Bank Limited ―
1. | Today, the Financial
Reconstruction Commission (the FRC) has decided to place operations of the Kokumin Bank
Limited (the Kokumin Bank) and management of its assets under financial reorganization
administrators pursuant to Article 8 of the Law concerning Emergency Measures for the
Reconstruction of the Function of the Financial System (the Law) based on the report
submitted by the Kokumin Bank to the FRC pursuant to Article 68-1 of the Law. |
2. | While the Kokumin Bank will
continue its normal operations under the financial reorganization administrators, the
Financial Supervisory Agency (the FSA) issued to the Kokumin Bank, immediately after its
submission of the report to the FRC, a management improvement order based on Article 26 of
the Banking Law, with a view to preventing the deterioration of its asset quality. Thus,
the Kokumin Bank is required to manage its business in a sound manner. |
3. | The FSA will continue to make use
of its supervisory power in an appropriate manner through the strengthened on-site
inspection and off-site monitoring, and strict enforcement of the Prompt Corrective
Action, etc. With these efforts, the FSA intends to expeditiously strengthen the Japanese
financial system by ensuring sound management of individual financial institutions. The
FSA will thereby make its utmost efforts to protect depositors and others, to maintain
orderly financial system, and to ensure the stability of the financial markets at home and
abroad. |