Mizuho Bank vows to cut jobs<\/p>\n
Agence France-Presse, Tokyo<\/p>\n
Mega Japanese lender Mizuho Bank said Tuesday it will close at
\nleast 100 branches in four years and slash jobs as it struggles
\nto boost business and shake off troublesome bad loans.<\/p>\n
\"We will start with about 560 branches. Our management plan
\nstates that we aim to reduce at least 100 branches,\" said a
\nspokesman for Mizuho Holdings Inc., holding company for Mizuho
\nBank and Mizuho Corporate Bank.<\/p>\n
Mizuho Bank will be formed in April after consolidating the
\nretail operations at Industrial Bank of Japan Ltd., Fuji Bank
\nLtd. and Dai-ichi Kangyo Bank Ltd. -- the three lenders which
\nmerged in 2000 to form the giant holding company.<\/p>\n
The Mizuho group would maintain a plan to cut 10,000 jobs by
\n2006, reducing its overall workforce to 25,000, the spokesman
\nsaid. As of September 2001, it employed 30,192 people.<\/p>\n
In an interview with Japanese media, Mizuho Bank's president-
\nelect Tadashi Kudo promised his bank would issue loans with
\ninterest rates that would reflect the risks involved.<\/p>\n
Japanese banks have been criticized for issuing low interest
\nloans to financially weak companies, which contributed to the
\nbanking sector's massive bad loan crisis.<\/p>\n
\"The costs associated with a collapse are enormous,\" Kudo told
\nthe Nihon Keizai Shimbun newspaper.<\/p>\n
\"The best way to minimize the occurrence of non-performing
\nloans is to have lenders discuss ways to rebuild a company as
\nsoon as it gets into financial trouble. We will also strive to
\nset interest rates to better reflect the risks involved,\" he told
\nthe financial daily.<\/p>\n
Kudo said his bank would closely advise small and medium-sized
\ncompanies to help them improve operations, Kyodo News Agency
\nreported.<\/p>\n
\"We will become a bank that will be promptly consulted by
\ncustomers and study rehabilitation programs together with them,\"
\nhe was quoted as saying.<\/p>\n
\"We will cudgel our brains to prevent loans (to them) from
\ngoing bad.\"<\/p>\n
Kudo also said his bank would use the government's loan-buying
\nResolution and Collection Corp. to reduce the level of bad debts
\non its balance sheets.<\/p>\n
To reduce bad loans, \"we will actively use Resolution and
\nCollection Corp. and bulk sales in order to promptly improve the
\nquality of our assets,\" Kudo told Kyodo.<\/p>",
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