Japan Regional Lender Jimoto Holdings to Exit Govt Control

Sendai, Miyagi Pref., April 25 (Jiji Press)--Japanese regional banking group Jimoto Holdings Inc. decided Friday to resume dividend payments on preferred shares it issued to the government in exchange for public funds, signaling its exit from government control.

Kirayaka Bank, now under Jimoto Holdings, received public funds in 2009 under the financial function reinforcement law, following the 2008 collapse of U.S. investment bank Lehman Brothers.

Public funds were again injected into the bank based in the northeastern city of Yamagata, following the 2011 massive earthquake and tsunami that heavily impacted northeastern Japan and the COVID-19 crisis.

The government has provided a total of 78 billion yen in public funds to Kirayaka Bank and Sendai Bank, also part of the Jimoto Holdings group.

At a general shareholders' meeting in June last year, Jimoto Holdings decided to skip dividend payments after posting a second straight annual net loss in fiscal 2023. The decision gave the government 63 pct voting rights on its preferred shares, making it the majority shareholder.

[Copyright The Jiji Press, Ltd.]