The Tokyo District Court on Tuesday ordered 10 former executives of collapsed Nippon Credit Bank to pay 4 billion yen in damages to Resolution and Collection Corp. for causing heavy loan losses to NCB.
RCC has taken over NCB's loans.
Former NCB Chairman Shiro Egawa, 81, and the others provided massive loans, despite expecting that they would become irrecoverable, violating the bank's internal lending regulations, the court said.
RCC, a public corporation for collecting nonperforming loans, filed the 4 billion yen damages suit against the 10 after taking over nonperforming loans from NCB, which failed and was put under state control in 1998. It was renamed Aozora Bank in 2001.
Tuesday's court ruling said the former NCB executives provided some 29 billion yen in loans between 1992 and 1993 to conceal nonperforming loans at Nippon Total Finance, then NCB's nonbank lending unit. More than 25 billion yen of the loans became irrecoverable. RCC limited its damages claim to part of the irrecoverable loans.