The Financial Supervisory Agency next week will declare that Kokumin Bank, a second-tier regional bank, is in a capital deficit of 50 billion yen, raising the specter of yet another government takeover, sources at the state agency said Thursday.
If Tokyo-based Kokumin fails to get recapitalization, another bank regulator -- the Financial Reconstruction Commission -- will have to use a financial-system revitalization law to prevent the bank from going under and disrupting the banking system.
Kokumin has apparently sought financial support from a group of firms led by Kokusai Kogyo Co., which operates buses, taxis and hotels and conducts real estate business, but the reaction was not a positive one, sources said.