Struggling Resona Bank plans to join forces with Nomura Securities Co. to set up a corporate revival fund specializing in small and midsize companies, sources said Monday.
The fund, to be created by the end of this month, is expected to help rehabilitate viable corporate borrowers, picked from Resona's clients, by purchasing outstanding loans to such corporations, the sources said.
The Nomura Securities group will actually manage the fund, they added.
Several other companies are considering putting up capital for the fund, the sources said.
Resona Bank has moved about 2.8 trillion yen in dud assets into a special account in a bid to enable it to shift more of its management resources to lending to individuals and small and midsize companies.