Credit Saison to Acquire 15 Pct Stake in Suruga Bank

Tokyo, May 18 (Jiji Press)--Japanese credit card company Credit Saison Co. said Thursday that it will acquire a stake of some 15 pct in Suruga Bank for 17.1 billion yen in an effort to turn around the struggling Japanese lender.

In turn, Suruga will acquire a stake of about 5 pct in Credit Saison for 15.4 billion yen. The lender has been struggling financially since its improper financing practices came to light in 2018.

Through the tie-up, Credit Saison aims to beef up its retail financial operations, while Suruga plans to boost investments in digital and other growth areas.

Naoki Takahashi, executive vice president at Credit Saison, and Kosuke Kato, Suruga Bank vice president, will sit on each other's board as outside directors.

Suruga will open an online bank branch for Credit Saison credit card holders.

[Copyright The Jiji Press, Ltd.]