Japan keen for bank merger
NZPA-AFP Tokyo The planned merger of Sumitomo, Japan’s thirdlargest city bank, with the financially-troubled Mutual Trust Bank Heiwa Sogo shows the ’eagerness of Japanese authorities to forestall the country’s first bank failure since World War 11. The two banks have reached agreement, calling for the merger to take place on October 1. The accord will be signed in May but is subject to approval by the shareholders of both banks, who are to meet in June. The Ministry of Finance, which has been
monitoring the management of Heiwa Sogo, has promised to support the merger, while the Bank of Japan governor, Mr Satoshi Sumita, said the central bank could make special credits available to both institutions to facilitate the merger. An official of a major foreign bank in Tokyo expressed surprise that both the Ministry and the central bank could have allowed Heiwa Sogo, the sixth largest of the 69 mutual trusts in Japan, to have accumulated credits worth just on SNZI3IM, which are considered uncollectable.
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Press, 20 February 1986, Page 27
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171Japan keen for bank merger Press, 20 February 1986, Page 27
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