Jimoto Holdings to Seek Public Funds for Bank Unit

Economy

Tokyo, May 11 (Jiji Press)--Japanese regional bank group Jimoto Holdings Inc. <7161> is considering applying with the Financial Services Agency for a public fund injection into a bank unit, sources said Wednesday.

Jimoto Holdings, which operates mainly in the Tohoku northeastern region, will ask for 20 billion yen in public funds to recapitalize the wholly owned unit, Kirayaka Bank, based in the Tohoku city of Yamagata.

The group hopes to use a special fund injection system to financially support small businesses hit hard by the novel coronavirus crisis under the revised law on special measures to strengthen financial functions, the sources said.

If the FSA approves the injection, Kirayaka Bank would be the first Japanese regional bank to receive public funds since 2014, when Howa Bank <8559> gained such financial assistance.

The government established the special system in June 2020 to encourage regional lenders to extend assistance to local businesses financially struggling due to the virus crisis.

[Copyright The Jiji Press, Ltd.]

Jiji Press