Nippon Credit Bank announced a plan which includes thorough restructuring, comprehensive disposal of nonperforming loans, and reinforcement of the capital base. Private financial institutions which have direct capital or business interest in Nippon Credit Bank have been asked to participate in the capital subscription to the bank.
The capital which cannot be obtained from private financial institutions will be supplemented by the New Financial Stabilization Fund through the underwriting of preferred shares. This will be carried out using the outstanding amount which has been contributed to the Fund by the Bank of Japan. In this respect, the restructuring plan of Nippon Credit Bank involves public support.