UPDATE1: Baba to become Aozora Bank's president.
(EDS: ADDING INFO)
Aozora Bank said Thursday that Deputy President Shinsuke Baba will be promoted to president at a board meeting after an extraordinary shareholders' meeting later in the day.
Brian Prince will step down from his position as president of the Tokyo-based bank to "spend more time with his family" but will serve as chairman, it said.
The change comes after the bank laid out a plan in August to repay all the public funds it has received from the government by 2022.
Aozora is the successor to the failed Nippon Credit Bank, which was placed under state control during the late 1990s financial crisis.
Baba, 58, entered the then Nippon Credit Bank in 1977 and has served as Aozora's deputy president since November 2008.
The bank also said U.S. investment fund Cerberus Group, its largest shareholder, will sell part of its Aozora shareholdings in response to the bank's planned share buyback bid. Cerberus now has about 821 million shares, or 42.49 percent of Aozora's total outstanding shares.
The Cerberus move indicates that Aozora's measures for shareholders regarding the public fund repayment have met the fund's investment recovery policy.
Cerberus also plans to start selling the remainder of its Aozora shareholdings on the market within this year.