Resolution of Failed Financial Institutions
When a financial institution fails, DICJ may be appointed as a financial administrator under the Deposit Insurance Law (until March 2001, the Law concerning Emergency Measures for the Revitalization of the Financial System).
(1) Operations as a financial administrator
When a financial institution fails, the DICJ may be appointed as a financial administrator of the financial institution ordered for management (hereinafter referred to as “the financial institution under management”) in accordance with the Deposit Insurance Act (Act on Emergency Measures for the Revitalization of the Financial Functions until March 2001).
Of the financial institutions ordered to be placed under the management of a financial administrator, DICJ was appointed as the financial administrator for 8 banks, 2 shinkin banks, and 2 credit cooperatives. In cooperation with other financial administrators, DICJ managed the business of these financial institutions under management, including the execution of their operations, management and disposal of their assets, and selection of assuming financial institutions.
Below is a summary of the resolution of the financial institutions under management for which DICJ acted as the financial administrator.
|Failed Financial Institutions||Date of management order||Date of business transfer agreement signed||Date of business transfer||Assuming Financial Institutions|
|Kokumin Bank||Apr. 11, 1999||Mar. 7, 2000||Aug. 14, 2000||Yachiyo Bank|
|Kofuku Bank||May 22, 1999||Oct. 6, 2000||Feb. 26, 2001||Kansai Sawayaka Bank|
|Tokyo Sowa Bank||June 12, 1999||Jan. 25, 2001||June 11, 2001||Tokyo Star Bank|
|Namihaya Bank||Aug. 7, 1999||July 28, 2000||Feb. 13, 2001||Daiwa Bank and Kinki Osaka Bank|
|Niigata Chuo Bank||Oct. 2, 1999||Dec. 21, 2000
(Towa Bank signed on Dec. 22, 2000)
|May 14, 2001
(Daishi Bank signed on May 9, 2001)
|Taiko Bank, Daishi Bank, Hachijuni Bank, Higashi-Nippon Bank, Gunma Bank and Towa Bank|
|Nichinan Shinkin Bank||Nov. 19, 1999||Oct. 20, 2000||Mar. 26, 2001||Nango Shinkin Bank|
|Kansai Kogin Credit Cooperative||Dec. 16, 2000||Jan. 17, 2002||June 17, 2002||Kinki Sangyo Credit Cooperative|
|Chogin Tokyo Credit Cooperative||Dec. 29, 2000||Dec. 17, 2002||Dec. 29, 2002||Hana Credit Cooperative
|Ishikawa Bank||Dec. 28, 2001||Mar. 28, 2002
( with BBJ )
Dec. 27, 2002
|Mar. 24, 2003||(through BBJ)
Hokuriku Bank, Hokkoku Bank, Firs Bank of Toyama, Kanazawa Shinkin Bank, Noto Shinkin Bank
|Sogo Shinkin Bank||Jan. 25, 2002||Feb. 20 2002||June 10, 2002||Osaka Shinkin Bank|
|Chubu Bank||Mar. 8, 2002||Mar. 28, 2002
( with BBJ )
Dec. 6, 2002
|Mar. 3, 2003||(through BBJ)
Shimizu Bank, Shizuoka Chuo Bank,
Tokyo Star Bank
|Incubator Bank of Japan||Sep. 10, 2010||Apr. 1, 2011
( with 2nd BBJ )
Oct. 20, 2011
|Dec. 26, 2011||AEON Bank (*)|
(*) All shares of the 2nd BBJ held by DICJ were transferred to the AEON Bank.
(2) Operations involving banks under special public management
DICJ's operations involving banks under special public management in line with the Financial Revitalization Law include the following: (1) the work associated with DICJ's acquisition of shares of banks under special public management; (2) the provision of financial assistance in line with the Deposit Insurance Law; (3) the provision of loans needed to execute the operations of banks under special public management; and (4) compensation for losses incurred when executing the operations of banks under special public management.
After the enactment of the Financial Revitalization Law, the Long-Term Credit Bank of Japan (now the Shinsei Bank) and the Nippon Credit Bank (now the Aozora Bank) were subject to failure resolution under special public management, both of which were terminated the subject of special public management.
- Long-Term Credit Bank: New LTCB Partners
- Nippon Credit Bank: Soft Bank Group (consisted of Soft Bank, Orix and Tokio Marine)
|Long-Term Credit Bank||Nippon Credit Bank|
|Decision date to commence special public management||Oct. 23, 1998||Dec. 13, 1998|
|DICJ purchases the shares on the announcement||Oct 28, 1996||Dec 17, 1998|
|1st stage of purchase of unsuitable assets using special financial assistance||Aug. 16, 1999||Nov. 22, 1999|
|Memorandum on the Transfer signed by DICJ||Sep. 28, 1999||Feb. 24, 2000|
|Basic Agreement on the Transfer signed by DICJ||Dec. 24, 1999||June 6, 2000|
|Final Agreement on the Transfer signed by DICJ||Feb. 9, 2000||June 30, 2000|
|Compensation for losses and purchase of shares||Feb. 28, 2000||Aug. 31, 2000|
|Decision to end special public management by FRC||Feb. 29, 2000||Aug. 31, 2000|
|Transfer and purchase of shares||March 1. 2000||Sep. 1, 2000|
|Capital injection||March 31, 2000||Oct. 3, 2000|
(3) Operations of a bank under the special crisis management
The special crisis management (a decision for the DICJ to acquire the shares of a failed bank) specified in the Deposit Insurance Act may be applied, through the deliberation of the Council for Financial Crises chaired by the Prime Minister, as measures against financial crisis that could severely hinder the maintenance of the financial system in Japan or in the region where the insured financial institution conducts its business.
In such a case the DICJ, as designated by the Commissioner of the Financial Services Agency, can select and appoint directors, auditors, etc. of the relevant bank.
A decision to place the Ashikaga Bank under the special crisis management was made on November 29, 2003. On July 1, 2008, the special crisis management of the Ashikaga Bank came to an end with the DICJ transferring all the Ashikaga Bank shares it had held to the transferee.
<Transferee of the Ashikaga Bank shares>
Ashikaga Holdings Co., Ltd. (a holding company established by a consortium led by Nomura Financial Partners Co., Ltd. and Next Capital Partners Co., Ltd to serve as an assuming financial institution of the Ashikaga Bank)
|Decision of commencing the special crisis management||November 29, 2003|
|Acquisition of all the shares by the DICJ||December 1, 2003|
|Selection and appointment of the new management members||December 16 & 25, 2003|
|Purchases of assets in accordance with the provisions of the Article 129 of the Deposit Insurance Act (1st – 4th)||August 23, 2004
March 22, 2005
February 6, 2006
March 31, 2008
|Conclusion of the share purchase agreement||April 11, 2008|
|Financial assistance (purchase of assets and monetary grant)||June 16 & 30, 2008|
|Transfer of shares (completion of the special crisis management)||July 1, 2008|