Japan quake: 77 Bank mulls receiving government's money

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Tokyo, April 18: The 77 Bank said today (April 18) it is considering requesting a public fund injection to replenish its capital base so that it can better meet the financial needs of companies hit by the March 11 earthquake and tsunami.

The Sendai-based regional bank will likely decide how much money to ask for under a law to be revised at the ongoing Diet session, which will be designed to reinforce regional banks and other smaller financial institutions to avoid a financial turmoil.

The Financial Services Agency plans to encourage financial institutions in quake-hit areas to file for an injection of public funds by easing requirements for applicants under the law.

Earlier Sendai Bank began considering whether it would utilise the proposed government financial assistance program.

The 77 Bank, with outstanding loans of 3.53 trillion yen as of the end of September last year and a workforce of 2,960, operates about 140 branch offices mainly in Miyagi Prefecture, which bore the brunt of the devastation wreaked by the temblor and tsunami.

PTI (Kyodo)

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