2. ブックメーカー入金不要ボーナス injection of public funds

Sumitomo ブックメーカー入金不要ボーナス and Sakura ブックメーカー入金不要ボーナス disposed of non-performing loans worth more than one trillion yen in each of fiscal years 1997 and 1998, resulting in a substantial net loss for two consecutive years. Against this backdrop, in March 1998, the two banks each received 100 billion yen of public funds pursuant to the Act on Emergency Measures for Stabilizing of Financial Functions. While under this legislation 13 trillion yen was prepared for capital injections, actual spending amounted to no more than 1.8 trillion yen in total, which went into 21 financial institutions.

In October 1998, the Act on Emergency Measures for Early Strengthening of Financial Functions was enacted. As a result, 25 trillion yen was prepared for capital injections to strengthen the capital base of financial institutions. In March 1999, public funds of about 7.5 trillion yen in total were injected into 15 major banks for recapitalization. Sumitomo ブックメーカー入金不要ボーナス and Sakura ブックメーカー入金不要ボーナス received public funds of 501 billion yen and 800 billion yen, respectively, in March 1999, which allowed both banks to raise their capital ratio to above 10% as of March 31, 1999. Subsequently, however, the injected public funds worth 1,501 billion yen from the past two programs was carried over to the new ブックメーカー入金不要ボーナス, posing a major issue to the post-merger management, which needed five years to pay off the obligation.