SBI Shinsei Bank to repay outstanding bubble bailout by end of July

Japan's SBI Shinsei Bank said Wednesday it plans to repay by the end of July the remaining 230 billion yen ($1.6 billion) in public funds that its predecessor received decades ago.

The bank is the only major domestic lender yet to complete the full repayment of government bailout funds provided following the bursting of Japan's asset price bubble, which it received after the 1998 collapse of its predecessor, the Long-Term Credit Bank of Japan.

Under the plan, parent company SBI Holdings Inc. will acquire all SBI Shinsei Bank shares currently held by government entities, including the Deposit Insurance Corp. of Japan.

The move comes after SBI Holdings reached a repayment deal with the government in March and returned 100 billion yen to the state.

SBI Holdings turned Shinsei Bank into a consolidated subsidiary following a 2021 takeover bid.