Asahi Bank announced plans Monday to cut roughly 200 billion yen in bad loans in two years through a tieup with U.S. investment bank Goldman Sachs Group Inc., allaying market fears about Asahi's financial strength.
Under the pact, Asahi Bank would sell some of its problem loans at market value to a loan-purchasing firm to be capitalized by Goldman.
The two banks will also set up a joint "servicer" company to help rehabilitate Asahi Bank's troubled corporate borrowers and collect debts from them, Asahi said.