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Since Hokuyo has no spare money, the two banks will still use separate computer systems.
ECONOMIST: Japanese banks
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Its loan book was five times the size of Hokuyo's: some 17, 000 Hokkaido companies borrowed from it.
ECONOMIST: Japanese banks
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But Hokuyo cannot call in most loans to debt-laden companies, because it has undertaken to keep the firms alive.
ECONOMIST: Japanese banks
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Hokuyo's solution was to buy two-thirds of Takugin's doubtful loans at a discount.
ECONOMIST: Japanese banks
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On November 15th last year Iwao Takamuki, vice-president of a small Hokkaido lender called Hokuyo Bank, was asked by the finance ministry if he would like to acquire the prestigious Takugin.
ECONOMIST: Japanese banks
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Next, Hokuyo had to find fresh capital.
ECONOMIST: Japanese banks
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Takugin's profitable business is likely to end up with Hokuyo Bank, a healthy mid-sized institution in Sapporo, while most of the non-performing loans will be inherited by the Deposit Insurance Corporation, an emergency pool funded mainly by other banks.
ECONOMIST: Japanese banks