In March 1997, with bad debts at 13.4% of Takugin's bank's total lending, thought to be the largest rate of all the City Banks, along with economic uncertainty, a problem with money supply emerged. With the policy aim "don't crush the big 20", the finance ministry formed a plan to merge Takugin with Hokkaidō Bank (Dohgin), which was the second bank in Hokkaidō, and whose president was the former head of treasury bills. Since Dohgin was also in financial difficulty due to the collapse of the bubble, at the end of March 1997 an amalgamation plan was revealed under which Takugin would continue in the interim, and in April of the following year there would be an amalgamation to form a bank called the New Bank of Hokkaidō.