dane-002.html

(Provisional translation)
April 11, 1999
Financial Supervisory Agency
The Government of Japan

Statement by the Commissioner

― On the Kokumin Bank Limited ―

1.	Today, the Financial Reconstruction Commission (the FRC) has decided to place operations of the Kokumin Bank Limited (the Kokumin Bank) and management of its assets under financial reorganization administrators pursuant to Article 8 of the Law concerning Emergency Measures for the Reconstruction of the Function of the Financial System (the Law) based on the report submitted by the Kokumin Bank to the FRC pursuant to Article 68-1 of the Law.
2.	While the Kokumin Bank will continue its normal operations under the financial reorganization administrators, the Financial Supervisory Agency (the FSA) issued to the Kokumin Bank, immediately after its submission of the report to the FRC, a management improvement order based on Article 26 of the Banking Law, with a view to preventing the deterioration of its asset quality. Thus, the Kokumin Bank is required to manage its business in a sound manner.
3.	The FSA will continue to make use of its supervisory power in an appropriate manner through the strengthened on-site inspection and off-site monitoring, and strict enforcement of the Prompt Corrective Action, etc. With these efforts, the FSA intends to expeditiously strengthen the Japanese financial system by ensuring sound management of individual financial institutions. The FSA will thereby make its utmost efforts to protect depositors and others, to maintain orderly financial system, and to ensure the stability of the financial markets at home and abroad.