Kirayaka Bank Pres. to Resign over Losses

Economy

Yamagata, July 9 (Jiji Press)--Kirayaka Bank said Tuesday that President Koji Kawagoe, 60, will step down after the regional bank, based in the northeastern Japan city of Yamagata, suffered its second straight year of losses.

Director Hideki Nishizuka, 52, is scheduled to become the new president in September. Nishizuka assumed his current post only last month.

The bank's troubled parent, Jimoto Holdings Inc., effectively came under state control after it decided to forgo dividend payments at an annual shareholders meeting in June. The decision gave voting rights to preferred shares held by the government in exchange for financial aid.

"I feel a pressure that I have never experienced before, as I will assume the responsibility of rebuilding management," Nishizuka said at a press conference in Yamagata. "I decided to take the post (of president) because I wanted to do what I could (to rebuild the company)."

He indicated that the bank will resume dividend payments as soon as possible.

[Copyright The Jiji Press, Ltd.]

Jiji Press