31:
204:
239:, then Minister of Finance, led the initiative to create LTCB as a specialty bank for the purpose of providing long-term credit to Japanese companies. Commercial banks at the time faced a mismatch between their own funding sources, which were mainly short-term demand deposits, and the needs of their customers for longer-term credit. LTCB was permitted to issue long-term bonds to fund its operations, which became popular investments in Japan due to their yield, credit rating and the fact that they were
404:
while the other two executives were sentenced to two years in prison and three years' probation. The
Supreme Court of Japan overturned their convictions in 2008, stating that the public accounting standards at the time were unclear and in a transitional period. The government was also unsuccessful in
335:
between the two banks. As SBC performed due diligence it discovered that LTCB had a dramatically high proportion of non-performing loans which continued to increase. The JV talks were cancelled in
September 1997. LTCB calculated its NPL balance at 2.4 trillion yen as of 1993, but increased that
225:) with headquarters in the Kudan district of north-central Tokyo. It opened branches in Osaka and Sapporo in 1953, and established agencies at various regional banks. LTCB was almost immediately profitable, owing to the rapid expansion of the Japanese economy at the time. It declared its first
270:
A 1985 accord liberalized the
Japanese financial services industry to a great degree and spurred the need for LTCB to dramatically change its business model. LTCB proceeded to train many employees in the United States and Europe in an effort to globalize its business. In 1988, LTCB acquired
294:
had a strong foothold on corporate banking, LTCB built up a large real estate finance business in the mid-1980s. The bank later became particularly infamous for its investments in overleveraged hotel acquisitions in New York, Saipan, Vietnam and
Australia, among other locales, as the
399:
LTCB president
Katsunobu Onogi and two executive vice presidents were arrested in June 1999 on charges of reporting false profits and authorizing illegal dividends. On appeal, Onogi was sentenced to three years in prison and four years'
343:, then U.S. deputy treasury secretary, visited Tokyo in June to pressure the Japanese government into resolving its bad loan crisis, fearing that an LTCB collapse would lead to a global financial panic. LTCB briefly sought to merge with
185:, it was one of the major financiers of the postwar economic development of Japan. After extensive problems with bad debt in the 1990s, the bank was nationalized in 1998, and finally sold in 2000 to a group led by US-based
302:
As of 1990, LTCB was the ninth-largest bank in the world by market capitalization and had become one of the most prestigious banks in Japan. It moved to a new office building on the south side of Tokyo's
392:
Prosecutors opened criminal investigations of several LTCB executives, owing to illegal payments of dividends in 1998 while the company was insolvent. Corporate planning head
Takashi Uehara committed
583:
436:
588:
260:
339:
LTCB's stock price plunged by over 70% in the summer of 1998 as the details of its bad loan situation leaked to the public through a
Japanese monthly magazine.
568:
376:
in June 2000. Although LTCB was delisted from the TSE upon its purchase, Shinsei, which was relieved of the bad debts of its predecessor, had a successful
598:
593:
444:
358:
LTCB was purchased for ¥1 billion (US$ 9.5 million) in March 2000 by an investment partnership, New LTCB Partners CV, consisting of a
532:
219:
enacted a Long-Term Credit Bank Act in June 1952 which became effective that
December, and LTCB was incorporated as a stock company (
267:. Corporate funding needs decreased as expansion slowed, and more Japanese companies began to obtain funding from overseas sources.
396:
in May 1999 shortly after his indictment was leaked to the public; Osaka branch manager
Kazunori Fukuda followed suit days later.
347:, one of the few stable Japanese banks at the time, but the latter discarded these plans after negative investor reaction. The
578:
367:
315:
Like many other
Japanese banks, LTCB faced a bad loan crisis in the post-bubble 1990s as many of its investments soured. The
279:-based securities firm, thus giving LTCB a US-based securities business. By the early 1990s, it was the largest handler of
573:
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in 1964, followed by offices in London, Sydney, Amsterdam, Los Angeles, and other major financial centers.
296:
344:
272:
506:
291:
178:
88:
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56:
324:
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of 1997, which bankrupted several major Japanese financial services companies (most notably
230:
182:
52:
17:
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government, which had helped to broker the talks between the banks, then investigated the
8:
363:
186:
92:
30:
41:
340:
323:), exacerbated the situation. Around this time, LTCB entered into discussions with
221:
207:
LTCB headquarters in Uchisaiwaicho, Tokyo, completed in 1993 and later occupied by
381:
352:
264:
243:
and therefore transferable like cash. The company moved to the Tokyo Building in
170:
203:
557:
332:
248:
216:
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in Japanese, was a Japanese bank founded in 1952 under the direction of the
372:
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of LTCB, which became effective by an act of the Diet on October 23, 1998.
348:
284:
280:
236:
208:
191:
102:
304:
276:
240:
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in the first foreign acquisition of a Japanese bank; it is now known as
16:"LTCB" redirects here. For the Turkish airport with ICAO code LTCB, see
359:
244:
84:
401:
226:
173:
government to provide long-term financing to various industries in
393:
405:
a suit to claim compensatory damages from the three executives.
328:
174:
116:
112:
475:"The Demise of a Banking Dinosaur: Long-Term Credit Bank"
584:
Companies formerly listed on the Tokyo Stock Exchange
370:
for the acquisition of LTCB. The company was renamed
247:
in 1956 and established its first overseas office in
259:The 1970s were a time of major change for LTCB as
589:Companies that have filed for bankruptcy in Japan
555:
145:
162:
139:
482:Chazen Web Journal of International Business
387:
380:at 2004 and remains in operation today as a
569:Financial services companies based in Tokyo
437:"Japan's LTCB: What A Coup And What A Risk"
429:
263:issuances increased, which drove up LTCB's
147:Kabushiki-kaisha Nippon Chōki Shin'yō Ginkō
29:
599:Japanese companies disestablished in 2000
504:
202:
135:The Long-Term Credit Bank of Japan, Ltd.
24:The Long-Term Credit Bank of Japan, Ltd.
468:
466:
464:
462:
594:Japanese companies established in 1952
556:
500:
498:
530:
505:MacIntyre, Donald (9 November 1998).
472:
368:The Chuo Mitsui Trust and Banking Co.
459:
310:
495:
13:
408:
336:number to 5 trillion yen by 1998.
14:
610:
533:"Supreme Court acquits LTCB trio"
443:. 10 October 1999. Archived from
51:long-term financial divisions of
331:) aimed at a cross-shareholding
254:
524:
229:in 1954 and was listed on the
1:
422:
579:Banks disestablished in 2000
7:
531:Hongo, Jun (19 July 2008).
297:Japanese asset price bubble
283:-denominated foreign debt (
146:
10:
615:
345:Sumitomo Trust and Banking
198:
128:Binsuke Sugiura, President
15:
574:Banks established in 1952
388:Prosecution of executives
273:Greenwich Capital Markets
163:
140:
122:
108:
98:
80:
70:
62:
47:
37:
28:
366:, which had bid against
362:of foreign banks led by
299:grew in the late 1980s.
292:Industrial Bank of Japan
261:Japanese government bond
179:Industrial Bank of Japan
418:(Harper Business, 2003)
378:initial public offering
321:Hokkaido Takushoku Bank
57:Hokkaido Takushoku Bank
564:Defunct banks of Japan
325:Swiss Bank Corporation
317:Asian financial crisis
212:
473:Espig, Peter (2003).
206:
231:Tokyo Stock Exchange
18:Ordu-Giresun Airport
364:Ripplewood Holdings
211:, LTCB's successor.
187:Ripplewood Holdings
76:2000 (restructured)
25:
507:"The Road To Ruin"
213:
183:Nippon Kangyo Bank
53:Nippon Kangyo Bank
42:Financial services
23:
447:on April 18, 2014
311:Collapse in 1990s
177:. Along with the
132:
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74:1998 (bankruptcy)
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341:Lawrence Summers
222:kabushiki kaisha
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33:
26:
22:
614:
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541:
539:
537:The Japan Times
529:
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477:
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460:
450:
448:
435:
434:
430:
425:
411:
409:Further reading
390:
382:commercial bank
353:nationalization
313:
265:cost of capital
257:
201:
171:Shigeru Yoshida
160:
156:in English and
137:
125:
75:
21:
12:
11:
5:
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416:Saving The Sun
414:Gillian Tett,
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312:
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256:
253:
200:
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152:, abbreviated
130:
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35:
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9:
6:
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3:
2:
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346:
342:
337:
334:
333:joint venture
330:
327:(now part of
326:
322:
318:
308:
306:
300:
298:
293:
288:
286:
285:samurai bonds
282:
278:
274:
268:
266:
262:
255:Globalization
252:
250:
249:New York City
246:
242:
238:
234:
232:
228:
224:
223:
218:
217:Diet of Japan
210:
205:
196:
194:
193:
188:
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180:
176:
172:
159:
155:
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136:
127:
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114:
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101:
97:
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90:
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73:
69:
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61:
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50:
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43:
40:
36:
32:
27:
19:
540:. Retrieved
536:
526:
514:. Retrieved
510:
485:. Retrieved
481:
449:. Retrieved
445:the original
441:Businessweek
440:
431:
415:
398:
391:
373:Shinsei Bank
371:
357:
349:Keizo Obuchi
338:
314:
301:
289:
269:
258:
241:bearer bonds
237:Hayato Ikeda
235:
220:
214:
209:Shinsei Bank
192:Shinsei Bank
190:
157:
153:
141:株式会社日本長期信用銀行
134:
133:
109:Headquarters
103:Shinsei Bank
305:Hibiya Park
277:Connecticut
48:Predecessor
558:Categories
423:References
360:consortium
245:Marunouchi
124:Key people
93:Ripplewood
85:Bankruptcy
402:probation
307:in 1993.
233:in 1970.
99:Successor
542:10 April
516:10 April
487:10 April
451:18 April
227:dividend
181:and the
89:acquired
38:Industry
394:suicide
290:As the
199:History
71:Defunct
63:Founded
329:UBS AG
158:Chōgin
478:(PDF)
175:Japan
117:Japan
113:Tokyo
544:2015
518:2015
511:TIME
489:2015
453:2014
275:, a
215:The
154:LTCB
81:Fate
66:1952
55:and
287:).
281:yen
91:by
560::
535:.
509:.
497:^
480:.
461:^
439:.
384:.
195:.
164:長銀
144:,
115:,
87:;
546:.
520:.
491:.
455:.
167:)
161:(
150:)
138:(
20:.
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