Shinsei Bank to Support Embattled Suruga Bank

Economy

Tokyo, May 13 (Jiji Press)--Struggling Japanese regional lender Suruga Bank <8358> is considering seeking support from Shinsei Bank <8303>, informed sources said Monday.

A comprehensive tie-up accord between the two banks, including a capital partnership, will be announced as early as Wednesday, the sources said.

The tie-up is expected to help Suruga Bank make progress in its business reconstruction, after public trust in the lender has been tarnished by its fraudulent loans for real estate investment, analysts said.

Also on Wednesday, Suruga Bank is set to release its earnings for the business year to March and the results of its full-scale investigations into the fraudulent loans.

Suruga Bank, based in Numazu in the central prefecture of Shizuoka, is considering receiving fresh capital from Shinsei Bank and forming a broad tie-up on services for individuals, including housing loans, with the major Japanese bank, the sources said.

[Copyright The Jiji Press, Ltd.]

Jiji Press