The government is considering appointing Norito Ikeda, former chief personnel officer of the Bank of Yokohama, as president of the nationalized Ashikaga Bank, according to sources close to the matter.

Ikeda, 56, has experience with overseeing loans and business enterprises as chief financial officer of Japan's biggest regional bank.

The Bank of Yokohama currently heads the Regional Banks Association of Japan.

Ikeda, a native of Kanagawa Prefecture, joined the Bank of Yokohama in 1970 after graduating from Tohoku University and has served as chairman of Yokohama Capital Co. since June after holding a number of senior posts in the Bank of Yokohama.

On Friday, Financial Services Minister Heizo Takenaka said the government is likely to select a new management team for Ashikaga Bank this week.

"We have started selecting specific suitable people (for the new management team)," Takenaka told a news conference. "We will try to reach an agreement around the first part of next week."

The government put Tochigi Prefecture's largest lender under state control Dec. 1 by seizing all shares in the bank after determining it to be insolvent, with a negative net worth of 102.3 billion yen as of Sept. 30.

The negative net worth reduced the lender's capital adequacy ratio to minus 3.7 percent. Banks operating domestically are required to maintain a minimum 4 percent.