Yachiyo Bank on Monday took over the operations of Kokumin Bank, a collapsed second-tier regional bank based in Tokyo, in a deal involving the use of more than 180 billion yen in public money to settle Kokumin's bad loans.
The Deposit Insurance Corp. said it has disbursed 183.7 billion yen to Yachiyo Bank to finance the deal.
The Resolution and Collection Corp. also announced the purchase of 220.3 billion yen worth of bad loans from Kokumin for 34.3 billion yen.
The RCC, the product of an April 1, 1999, merger of the Housing Loan Administration Corp. and the Resolution and Collection Bank, is charged with buying bad loans from collapsed institutions and relatively healthy financial institutions.
Kokumin failed in April 1999 and had 124.6 billion yen of liabilities in excess of assets at the end of September.
Kokumin had been under state control since its collapse.