Japan to rescue Cosmo deposits
Tuesday 29 August 1995
The Japanese authorities have announced plans for a pounds 1.75bn wind-up of Cosmo Shinyo Kumiai, the Tokyo credit union that failed this summer after a run on its deposits.
Tokyo's city government, the Bank of Japan and Japan's deposit insurance body will contribute to the scheme. The rescue means depositors will get their money back, although some large ones will lose interest. Other private financial institutions will write off loans made by them to Cosmo.
The plan was described yesterday as crucial to restoring confidence in Japan's 400 credit unions, many of which have been battered by the country's huge bad-loans problem, estimated by the authorities to stand at more than pounds 300bn.
A senior finance ministry official said: "To protect the stability of the financial system in Japan, financial institutions have decided to co-operate in the scheme."
Tokyo's city government, responsible for supervising local credit unions, suspended part of Cosmo's operations four weeks ago after media reports of its financial troubles triggered a run on deposits.
Under the wind-up deal, Cosmo's business will be transferred to Tokyo Kyodo Bank, set up with Japanese government help to wind up two other failed credit unions. Unrecoverable loans at Cosmo totalled 235bn (pounds 1.5bn). Its creditors include some of Japan's biggest banks: Sanwa, Fuji, Tokai and Mitsubishi Trust & Banking Corp.
Bank of Japan and Tokyo city government and credit unions around Japan will contribute smaller amounts, with the bulk of funds coming from Deposit Insurance Corp of Japan, which insures depositors by using premiums from private banks.
- 1 Venezuela Expo Tattoo 2015: Extreme body art from 'Vampire Woman' to 109mm earlobes
- 2 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 Rashida Jones speaks out against male-centric porn saying 'women should have sex and feel good about it'
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Putin opponent reveals Russian President's daughter's secret identity
Ball pool for adults opens in London
Gay couple buy JebBushForPresident.com web domain, and refuse to sell
16 Waitrose customers who could not cope with the end of free coffee
9 reasons Greece's experiment with the radical left is doomed to failure
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
King Abdullah dead: We can't afford not to hold Saudi Arabia's royals to account
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...