Purchase of Trust Beneficial Rights from the Shinkumi Federation Bank (Tokyo Kosei Shinkumi Bank and Yokohama Chuo Shinkumi Bank) in accordance with the Financial Functions Strengthening Act

Press Release

Date: March 31, 2014

1.

On March 7, in accordance with the provisions of Article 28, paragraph 1 of the Act on Special Measures for Strengthening Financial Functions (“Financial Functions Strengthening Act”), the Financial Services Agency decided for the Shinkumi Federation Bank the purchase of trust beneficial rights of preferred equity issued by Tokyo Kosei Shinkumi Bank and Yokohama Chuo Shinkumi Bank.

Based on the decision, the Resolution and Collection Corporation (“RCC”) purchased preferred beneficial rights out of trust beneficial rights (whose underlying asset is preferred equity of each of the Shinkumi banks subscribed by the Shinkumi Federation Bank) from the Shinkumi Federation Bank today. The purchased trust beneficial rights are outlined below.

   
2.

Operation of capital injection with public funds through purchase of the trust beneficial rights mentioned above aims at the stable and smooth provisions of funds by each of the Shinkumi banks to small and medium-sized enterprises in the region more than ever. It is one of the most important operations of the Deposit Insurance Corporation of Japan (“DICJ”).

   
3.

The DICJ will continue to closely cooperate with the relevant authorities and will execute operations of capital injection based on the Financial Functions Strengthening Act surely and smoothly.

   

Outline of trust beneficial rights purchased by the RCC

・ Tokyo Kosei Shinkumi Bank (Shinjuku-ku, Tokyo)
Settler Shinkumi Federation Bank
Trust property
(Underlying asset)
Bond type non-cumulative perpetual preferred equity of Tokyo Kosei Shinkumi Bank subscribed by the Shinkumi Federation Bank
Type Preferred beneficial rights out of trust beneficial rights
Principal amount of preferred beneficial rights ¥5 billion
 
・ Yokohama Chuo Shinkumi Bank (Yokohama, Kanagawa)
Settler Shinkumi Federation Bank
Trust property
(Underlying asset)
Bond type non-cumulative perpetual preferred equity of Yokohama Chuo Shinkumi Banki subscribed by the Shinkumi Federation Bank
Type Preferred beneficial rights out of trust beneficial rights
Principal amount of preferred beneficial rights ¥19 billion
Notes:  Yokohama Chuo Shinkumi Bank was established by the merger of Chuo Shogin Shinkumi Bank and Asunaro Shinkumi Bank.

Top of Page