The state-run Resolution and Collection Corp. has decided to buy real estate put up as collateral for loans that soured from 35 financial institutions at one-twentieth combined book value.
The Financial Reconstruction Commission has approved a request by the state-run Deposit Insurance Corp., which is charged with determining the price of bad-loan collateral, to have the RCC buy real estate collateral with a book value of 138.40 billion yen for 6.66 billion yen, commission officials said Monday.
The 35 financial institutions include 11 of the nation's 17 largest commercial banks.