(Provisional Translation)
October 2, 1999
Financial Supervisory Agency
The Government of Japan

Statement by the Commissioner

-- On the Niigata Chuo Bank, Ltd.--

  1.       In view of the low level of the capital adequacy ratio of the Niigata Chuo Bank, Ltd.(the Niigata Chuo Bank) at the end of March, 1999, which reflects the result of the financial inspection of the bank - as of September 30, 1998 - conducted by the Financial Supervisory Agency (FSA) , the FSA issued an order of Prompt Corrective Action to the bank on June 11, 1999 including a demand to take measures to enhance its capital adequacy ratio.

  2.       Under these circumstances, the bank submitted, on October 1, to Financial Reconstruction Commission (FRC) a report according to Clause 1, Article 68 of the Law concerning Emergency Measures for the Reconstruction of the Function of the Financial System (Law). Based on this report and situation concerning the Niigata Chuo Bank such as cash flow of the bank, the FRC has decided today to place operations of the bank and management of its assets under financial reorganization administrators, pursuant to Article 8 of the Law.

  3.       While the bank will continue its normal operations under the financial reorganization administrators, the FSA issued to the bank, immediately after the bank's submission of the report to the FRC mentioned above, a management improvement order based on Clause 1, Article 26 of the Banking Law. This order aims to prevent the deterioration of the bank's asset quality through requiring the bank to manage its business in a sound manner.

  4.       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. With these efforts, the FSA intends to further 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.

Statement by the Minister Yanagisawa - On the Niigata Chuo Bank, Ltd. -