The government will consider injecting public money into merged regional financial institutions to boost their capital bases to encourage regional banks and credit associations to merge, the Financial Services Agency said Wednesday.
The government will also consider raising the limit of its full-refund guarantee on deposits for the merged institutions as a special condition, according to the FSA's interim report on measures to promote reorganization of regional banks.
The FSA is likely to consider the public fund injection if the capital adequacy ratios of merged banks fall as a result of mergers.