Latest news with #SBIShinseiBank
Yomiuri Shimbun
5 days ago
- Business
- Yomiuri Shimbun
SBI Shinsei Bank: Completion of Repayment Leaves Lessons for the Public Fund System
SBI Shinsei Bank completed the repayment of public funds it received during the era of its predecessor — the Long-Term Credit Bank of Japan — at the end of last month. This means that all public funds injected by the government in response to the financial crisis of the late 1990s have now been repaid. However, the fact that it took a quarter of a century for the repayment to be completed can be said to have left behind a sobering lesson about the public fund system. In the early 1990s, the bubble economy collapsed, and financial institutions burdened with massive nonperforming loans were forced to deal with losses, leading to a sharp deterioration in performance. The Long-Term Credit Bank of Japan, which had supported Japan's postwar reconstruction, fell into decline after enjoying the bubble economy and became a symbol of the financial crisis. In 1997, Yamaichi Securities Co. decided to voluntarily close down its business and Hokkaido Takushoku Bank went bankrupt, spreading anxiety throughout the financial system. In 1998, the government established a public fund system and began injecting funds into financial institutions, investing a total of over ¥12 trillion by 2003. Financial institutions are social infrastructure that are vital in terms of the public interest. Looking back now, the injection of public funds can be evaluated as having been an essential response. However, it must be said that the repayment of public funds by SBI Shinsei Bank was completed too late. This was due to the fact that the government, in exchange for injecting public funds, held common shares in the bank, creating a system in which sufficient funds could not be recovered unless the share price rose. This was further compounded by the bank's deteriorating performance and the Financial Services Agency's inadequate guidance on operational improvements. In 2021, SBI Holdings, Inc., a major internet securities firm, made the then Shinsei Bank — which was established in the renaming of the Long-Term Credit Bank of Japan — a subsidiary, finally paving the way for the completion of the repayment of public funds. As long as taxpayers' money is being injected, financial institutions need to once again recognize their heavy responsibility toward society. It is hoped that SBI Shinsei Bank will use the completion of the repayment of public funds as an opportunity to pursue customer-oriented management. The current situation is that public funds have been injected to support regional economies in response to economic crises that were caused by such events as the 2011 Great East Japan Earthquake and the COVID-19 pandemic. They are also being used to promote restructuring in the financial industry. About ¥400 billion in public funds remain unrepaid. It is undesirable for public funds to be injected and then for businesses receiving them to be content with the situation and there being no prospect of repayment. The Bank of Japan ended its large-scale monetary easing policy, and a world with interest rates has arrived. It is now an era when financial institutions are being further tested on their management capabilities. It is hoped that they will continue to map out their strategies for management improvement. It is also vital for the FSA to supervise financial institutions, while carefully examining the outlook for the Japanese economy, the future of regional economies and the prospects for the earnings environment of financial institutions, among other factors. (From The Yomiuri Shimbun, Aug. 7, 2025)
31-07-2025
- Business
SBI Shinsei Bank Completes Repayment of Public Funds
News from Japan Jul 31, 2025 16:46 (JST) Tokyo, July 31 (Jiji Press)--Japan's SBI Shinsei Bank said Thursday that it has repaid all remaining public funds worth 230 billion yen to the government. For the repayment, its parent, SBI Holdings Inc., purchased SBI Shinsei preferred shares held by government-affiliated Deposit Insurance Corp. of Japan and Resolution and Collection Corp. Following the completion of repayment of public funds, SBI Shinsei is expected to be listed on a stock exchange again within this year. Among the Japanese banks that received public funds for recapitalization during the financial crisis in the late 1990s to the early 2000s, SBI Shinsei was the last to repay the taxpayer money. SBI Shinsei, formerly Long-Term Credit Bank of Japan, which went bust in 1998, became a subsidiary of SBI Holdings, a major online financial service group, in 2021 through a tender offer as it was unable to fully pay back public funds given to deal with its massive nonperforming loans reflecting the collapse of the country's speculation-driven bubble economy. The bank was delisted from the Tokyo Stock Exchange in September 2023. [Copyright The Jiji Press, Ltd.] Jiji Press
11-07-2025
- Business
SBI Shinsei Bank Applies for Relisting on TSE
News from Japan Economy Jul 11, 2025 14:49 (JST) Tokyo, July 11 (Jiji Press)--SBI Shinsei Bank, a unit of major Japanese online financial service group SBI Holdings Inc., on Friday applied for its relisting on the Tokyo Stock Exchange. The bank, formerly Long-Term Credit Bank of Japan, which went bankrupted in 1998, plans to repay all of its remaining public funds worth about 230 billion yen to the government at the end of this month. The parent holding company, which is set to shoulder the fund repayment, aims to position the subsidiary at the center of its 'fourth megabank' plan. MUFG Bank, Mizuho Bank and Sumitomo Mitsui Banking Corp. are Japan's three megabanks. SBI Holdings made SBI Shinsei a subsidiary in 2021 through a tender offer. The bank was delisted from the TSE in September 2023. END [Copyright The Jiji Press, Ltd.] Jiji Press
Nikkei Asia
25-06-2025
- Business
- Nikkei Asia
Japan's SBI Shinsei aims to relist after July repayment of bank bailout
Finance Move will mark end to rescue that took place quarter century ago Parent company SBI Holdings, led by CEO Yoshitaka Kitao, is spearheading SBI Shinsei Bank's repayment plan. (Source photos by Nikkei) Nikkei staff writers TOKYO -- Japan's SBI Shinsei Bank will complete its repayment of roughly 230 billion yen ($1.6 billion) in bailout money on July 31, the company said on Wednesday, as it aims to relist on the Tokyo Stock Exchange this year. The money will be repaid by the Japanese bank's parent group, SBI Holdings, which will buy preferred shares held by the Deposit Insurance Corporation of Japan and another government-backed body.
24-06-2025
- Business
Japan's SBI Shinsei Bank to Repay All Remaining Public Funds
News from Japan Jun 24, 2025 23:35 (JST) Tokyo, June 24 (Jiji Press)--Japan's SBI Shinsei Bank expects to repay all of its remaining public funds worth 230 billion yen as early as the end of July, it was learned Tuesday. Parent company SBI Holdings Inc., a financial giant, is expected to buy preferred shares in SBI Shinsei Bank held by such organizations as the government-affiliated Deposit Insurance Corp. of Japan. SBI Shinsei Bank, previously called Long-Term Credit Bank of Japan, is the last remaining major bank that accepted public funds injected during the country's banking crisis that began in the late 1990s. The full repayment will mark the conclusion of government aid extended in response to the crisis. Expecting the full repayment, SBI Shinsei Bank will apply for listing on the Tokyo Stock Exchange next month, aiming to make a stock market comeback. The bank aims to accelerate its growth including by cooperating with regional lenders as a core entity in SBI Holdings' project to create a fourth megabank group. [Copyright The Jiji Press, Ltd.] Jiji Press
