Public funding of 9.2 billion yen for two credit unions in Niigata and Aomori February 28 at 19:43
The Financial Services Agency has decided to invest 9.2 billion yen in public funds for the two credit unions in Niigata and Aomori. The aim is to utilize the mechanism of the Financial Function Enhancement Law to strengthen the financial foundation of credit unions and encourage financing to local SMEs.
The FSA has decided to invest public funds in the “Flapping Credit Union” with its head office in Niigata City and the “Aomori Prefecture Credit Union” with its head office in Aomori City.
A central organization, the National Federation of Credit Cooperatives, had applied for public funding under the Financial Strengthening Act. The two credit unions maintain soundness above standards, but the aim is to strengthen their financial base with public funds and increase financing to small and medium enterprises.
Following the application, the FSA, through the Federation, decided to invest ¥ 2 billion in "Flapping Credit Union" and ¥ 7.2 billion in "Aomori Prefectural Credit Union" next month.
It is the first time in three years that credit unions have been funded through the Federation, and a total of 18 credit unions have received public funding under the Financial Strengthening Act.