OSAKA -- The Osaka Prefectural Government announced Wednesday that troubled Credit Union Osaka Shogin will transfer its operations to Credit Union Kyoto Shogin.
The Deposit Insurance Cooperation of Japan will also be requested to purchase bad loans from Osaka Shogin. Liabilities at Osaka Shogin exceeded its 318.4 billion yen in assets by 92 billion yen as of the end of March 1998, an official of the struggling firm said.
A prefectural official said Osaka Shogin will continue normal operations until the transfer, the date for which has not been decided, and deposits at the union will be protected.
Osaka Shogin has 18 branches in Osaka Prefecture with 250 billion yen deposits and 295 staffers. Kyoto Shogin has seven branches in Kyoto Prefecture with 96 billion yen deposits and 102 staffers.