Norito Ikeda, former chief personnel officer of the Bank of Yokohama, became on Tuesday the new president of the recently nationalized Ashikaga Bank.

Announcing Ikeda's appointment at a news conference, Financial Services Minister Heizo Takenaka said the government turned to Ikeda because "he is a professional in local financial services and corporate rehabilitation."

Ikeda, 56, is expected to lead Ashikaga Bank's revitalization drive by drawing on the experience he gained at the Bank of Yokohama in such fields as financing, management planning and personnel management.

The Bank of Yokohama is the nation's biggest regional bank.

During a news conference at Ashikaga Bank's head office in Utsunomiya, Tochigi Prefecture, Ikeda said he will carry out bold restructuring programs, including employee pay cuts, because "considerable management rationalization is naturally required."

Ikeda listed four management reform targets: support for the rehabilitation of small and midsize companies, management transparency, the establishment of an in-house panel of accounting experts to monitor operations, and the thorough rationalization of management.

Ikeda joined the Bank of Yokohama in 1970 after graduating from Tohoku University.

He currently serves as a part-time director at the Bank of Yokohama and as chairman of Yokohama Capital Co., a venture capital company affiliated with the bank.

The government now has to choose a new management team to support Ikeda.

Although the government had planned to announce the entire management team, Takenaka said the selection of other members is "difficult and will take some more time."

The government is holding talks with lawmakers from Tochigi Prefecture and with local assembly members to pick management team members primarily from local businesses.