Based on the Act on Special Measures for Strengthening Financial Functions, Towa Bank recently requested to the Resolution and Collection Corporation (the RCC hereafter) to dispose the bank’s preferred shares held by the RCC. The DICJ received the RCC’s application on disposing the shares for approval.
The DICJ considered this matter based on “Immediate Guideline for Disposal of Preferred Shares and other Capital-Raising Instruments Acquired through Capital Injection with Public Funds”, announced in October 2005. After considering, the DICJ concluded that there were no problems on this matter from the following viewpoints:
Sound management of financial institutions
Avoiding people’s cost burden
Stability financial system
Today, the DICJ approved the RCC’s application based on the approvals of the Commissioner of the Financial Services Agency and the Minister of Finance on the matter.