When a financial institution fails, DICJ may extend financial assistance to an assuming financial institution and/or a bank holding company that purchases assets and assumes liabilities of or mergers with a failed financial institution in order to facilitate the transaction. The financial assistance may take the form of a monetary grant, loan or deposit of funds, purchase of assets, guarantee or assumption of debts, subscription for preferred stock or loss sharing. In case of a partial transfer of business or a transfer of insured deposits of failed financial institutions, the DICJ can provide financial assistance to the failed financial institution in order to ensure equitable treatment among creditors. Additional financial assistance can be provided, if necessary, in response to the applications from the assuming financial institution and/or bank holding company. When the assuming financial institution and/or bank holding company asks DICJ to subscribe for their preferred stock and others, it needs to submit a plan to ensure its financial health.

DICJ may purchase deposits and other claims not covered by deposit insurance (for example, the principal of insurable deports in excess of ￥10 million, plus interest accrued thereon, or non-insurable foreign currency deposits, plus interest accrued) of financial institutions that have been subject to an insurable contingency, in response to requests from depositors, etc. The purchase price, known as "estimated proceeds payment", is to be calculated by multiplying the balance of claims on the date of the insurable contingency by a rate determined in consideration of the estimated liquidating dividend of the failed financial institution (the "estimated proceeds payment rate"), among other factors. If the amount recovered by DICJ from purchased deposits and other claims (excluding expenses related to their purchase) exceeds the estimated proceeds payment, the surplus is to be refunded to the depositors, etc. ("settlement payment")

When the Commissioner of the FSA recognizes that a financial institution is in such situations as an excess of liabilities over assets, and issues “an order for a financial administrator to manage the business and assets of such financial institution (hereinafter referred to as “the order for management” and the financial institution which received the order as “the financial institution under management”), the DICJ itself may be chosen as the financial administrator.  When appointed as the financial administrator, the DICJ sends its staff to the financial institution under management to conduct operations on behalf of it. Key activities of the financial administrator are: 1)operation and management of a financial institution under management on behalf of the former management; 2) selection of assuming financial institutions and smooth transfer of the business; and 3) pursuit of liability of former executives of a financial institution under management.

DICJ can establish a bridge bank, as its subsidiary, which assumes the business of a financial institution under management in order to temporarily succeed the business of the financial institution under management. A bridge bank is established when no assuming financial institution of the financial institution under management is promptly found.  The bridge bank undertakes lending and other business of the financial institution under management under the supervision of the DICJ.  A bridge bank is dissolved within 2 years after the date when the order for management is issued to a financial institution from which the bridge bank first receives a transfer of business.  The DICJ completes the operations of a bridge bank by merger of the bridge bank, transfer of the whole business, transfer of shares, and the resolution of the general meeting of the shareholders to authorize the dissolution.  The 2-year duration can be extended for one year when a bridge bank cannot finish its operations within 2 years for unavoidable reasons.

If the failure of a financial institution poses an extremely serious threat to the stability of the financial system and local and national economies, the Prime Minister can invoke the provisions of the law and take one or more of following three types of measures on the advice of the Council for Financial Crisis. DICJ can execute these operations with an order of the Prime Minister. a. Subscription of shares, etc of financial institutions (except for case of b. below) by DICJ b. Financial assistance to failed financial institutions and/or financial institutions with capital deficit in excess of the pay-out cost c. Acquisition of entire shares of failed financial institutions with capital deficit byDICJ (banks under special crisis management) In the case of b., an order for management by a financial administrator is to be issued immediately after the confirmation to make this arrangement. In the case of c., the FSA would appoint new directors of the bank under special crisis management, and they may proceed with necessary civil and criminal procedures to clarify the managerial liability of its former auditors, etc. This arrangement should be ended as soon as possible by transferring the business to an assuming financial institutions, etc.

DICJ can conduct on-site inspections of financial institutions, if the Prime Minister (legally mandated to the Commissioner of the Financial Service Agency) deems it necessary to ensure that the provisions of the Law are implemented efficiently. The scope of the on-site inspections include: 1) to check if payment of insurance premiums is being made properly; 2) to check if measures have been taken to prepare databases and improve information system for aggregating deposits held by the same depositors, as obligatory to financial institutions; and 3) to check the estimated amounts that can be repaid on deposits and other claims when a financial institution has been made subject to bankruptcy proceedings.

Aiming at strengthening capital base of financial institutions, DICJ has subscribed for their shares in accordance with the Early Strengthening Law, Financial Functions Stabilization Law (abolished in October 1998), Act on Organizational Restructuring, Act on Strengthening Financial Functions and Deposit Insurance Law, as follows (DICJ has undertaken share subscriptions under the Deposit Insurance Law while RCC, the contracted bank, has been entrusted to undertake those under other laws and acts.):
(1)	Capital injection operations At present, capital injection operations are conducted under the Act on Strengthening Financial Functions (until March 31, 2012) and the Deposit Insurance Law (measures against financial crises and capital injection into assuming financial institutions: permanent measures.)
(2)	Administrative operations Aiming at proper management and administration of shares subscribed through capital injection operations, DICJ has conducted hearings in a timely manner with issuing banks regarding their account settlements and has exercised a voting right at the general meeting of shareholders in accordance with the "Basic Policy in Exercising a Voting Right as a Shareholder."
(3)	Disposal operations DICJ has been making efforts at smooth disposal of shares subscribed through capital injection operations in accordance with the "Immediate Guideline for Disposal of Preferred Stocks, etc. acquired through Capital Injection with Public Funds" announced in October 2005 from the viewpoints of: (1) avoidance of public burdens; (2) stability of the financial system; and (3) sound management of financial institutions.

DICJ conducts specific activities under the agreement with the RCC such as 1) to provide the RCC with guidance and advice necessary to execute its operation; 2) to decide to inspect the assets of debtors where it is likely to be concealed; 3) to collect claims from the debtors whose assets are mortgaged in complicated manner. These activities are aiming at minimizing the public costs by maximizing the collection of debts through the coordination with the RCC.

DICJ's pursuit of civil and criminal liability includes the pursuit of managerial liability on the part of executives of failed financial institutions and former Jusen companies by the RCC, and the pursuit of managerial liability of former executives of failed financial institutions by DICJ in its capacity as a financial administrator. The pursuit of criminal liability of debtors has resulted in a number of accusations including obstruction of an auction, obstruction of execution, and fraud.

The Act on the Payment of Damage Recovery based on the Funds of Criminal Accounts (the "Act on Criminal Accounts Damages Recovery") became effective on June 21, 2008. The purpose of the Act is to establish the procedures for payment of damage recovery distributions in order to pay the distributions to victims of criminal acts such as fraud in which people were tricked to send money to designated deposit accounts, and by that to promptly recover proprietary damages of the victims. At the request of financial institutions, the DICJ gives a public notice of procedures for payment of distributions to victims on its website "Public Notice based on the Act on Criminal Accounts Damages Recovery" where the DICJ posts relevant bank accounts as requested by financial institutions.