Towa Bank told the Tokyo Stock Exchange on July 7 that a client, Zentoshin Co., Ltd., filed for bankruptcy at the Osaka District Court on July 6 and that proceedings began the same day. The bank now has ¥8bn in loans outstanding to Zentoshin, an amount equal to 8.83% of Towa Bank's consolidated net assets as of March 2026.
Zentoshin, capitalized at ¥4,500mn and based in Chuo-ku, Osaka, ran a business handling billing on behalf of merchants for credit-card sales and advancing them the proceeds of those sales. The company was led by representative director Manho Takayama, according to the filing.
| Metric | Value |
|---|---|
| Bankruptcy filing | Osaka District Court, July 6, 2026 |
| Total loan exposure | ¥8bn (8,000 million yen) |
| Share of consolidated net assets (March 2026) | 8.83% |
| Unsecured/unprovisioned portion | ¥5.89bn (5,886 million yen) |
| Provisioning timing | Full provision in the year ending March 2027 |
Of the ¥8bn owed, ¥5,886mn (about ¥5.89bn) is not covered by collateral or existing reserves. Towa Bank says it will record a full provision for that uncovered amount in the fiscal year ending March 2027.
What the bank has not yet said is how the provision will move its bottom line. Towa Bank's disclosure notes that its full-year earnings forecast for the year ending March 2027 is still under review, and that it will announce any revision to that forecast promptly if one becomes necessary. Until then, the ¥5.89bn provisioning figure sits alongside guidance that has not been updated to reflect it.