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Tighter Auditing Leads to Public Funds Injection for Resona.

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| September 01, 2003 | COPYRIGHT 2003 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Journal of Japanese Trade & Industry (JJTI))

Byline: Tani Sadafumi

On July 1, the government injected nearly \2 trillion of public funds into Resona, one of Japan's leading financial groups, virtually nationalizing the Group. As a result of the bail-out, Resona's capital adequacy ratio, which had fallen below the level required for sound management, recovered into the double digit range. This avoided the kind of negative economic impact that resulted from the jitters that rippled through Japan's financial system when the Hokkaido Takushoku Bank and Yamaichi Securities went bankrupt in 1997, and when the Long-Term Credit Bank of Japan and the ...

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