Deposit Insurance Corporation of Japan-Governor's Press Release 2002.4.17

April 17, 2002
Deposit Insurance Corporation of Japan

Governor's Press Release

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The Policy Board of the Deposit Insurance Corporation of Japan (DICJ) held today, approved its financial assistance in transferring the business of failed financial institutions to sound financial institutions. The DICJ's financial assistance has been made in response to applications for such assistance.

1.	Financial assistance in the transfer of business from the Akita-ken Chuo Credit Cooperative to the Akita Shinkin Bank
	Following a joint application by the Akita Shinkin Bank (Head Office: Akita City, Akita Prefecture) and the Akita-ken Chuo Credit Cooperative (Head Office: Oga City, Akita Prefecture) on March 15, 2002, financial assistance will be implemented as follows.
(1)	Monetary grant to the Akita Shinkin Bank: 4.0 billion yen (scheduled for July 22, 2002)
(2)	Purchase of assets from the Akita-ken Chuo Credit Cooperative: 5.6 billion yen (scheduled for July 22, 2002)

2.	Financial assistance in the transfer of business from the Tochigi-ken Chuo Credit Cooperative to the Tochigi Bank
	Following a joint application by the Tochigi Bank (Head Office: Utsunomiya City, Tochigi Prefecture) and the Tochigi-ken Chuo Credit Cooperative (Head Office: Utsunomiya City, Tochigi Prefecture) on March 15, 2002, financial assistance will be implemented as follows.
(1)	Monetary grant to the Tochigi Bank: 8.5 billion yen (scheduled for June 24, 2002)
(2)	Purchase of assets from the Tochigi-ken Chuo Credit Cooperative: 6.7 billion yen (scheduled for June 24, 2002)

3.	Financial assistance in the transfer of business from the Tochigi-ken Chuo Credit Cooperative to the Tochigi Bank
	Following a joint application by the Tokyo Star Bank (Head Office: Minato Ward, Tokyo), the Choshi Shoko Credit Cooperative (Head Office: Choshi City, Chiba Prefecture), and the Chiba-ken Shoko Credit Cooperative (Head Office: Chiba City, Chiba Prefecture) on March 29, 2002, financial assistance will be implemented as follows.
(1)	Monetary grants to the Tokyo Star Bank and the Choshi Shoko Credit Cooperative: 33.1 billion yen (scheduled for August 19, 2002)
(2)	Purchase of assets from the Chiba-ken Shoko Credit Cooperative: 16.8 billion yen (scheduled for August 19, 2002)

4.	Financial assistance in the transfer of business from the Chiba Shogin Credit Cooperative to the Yokohama Shogin Credit Cooperative
	Following a joint application by the Yokohama Shogin Credit Cooperative (Head Office: Yokohama City, Kanagawa Prefecture) and the Chiba Shogin Credit Cooperative (Head Office: Chiba City, Chiba Prefecture) on March 22, 2002, financial assistance will be implemented as follows.
(1)	Monetary grant to the Yokohama Shogin Credit Cooperative: 5.4 billion yen (scheduled for June 24, 2002)
(2)	Purchase of assets from the Chiba Shogin Credit Cooperative: 1.8 billion yen (scheduled for June 24, 2002)

5.	Financial assistance in the transfer of business from the Tokyo Credit Cooperative to the Tokyo Star Bank
	Following a joint application by the Tokyo Star Bank (Head Office: Minato Ward, Tokyo) and the Tokyo Credit Cooperative (Head Office: Chiyoda Ward, Tokyo) on March 15, 2002, financial assistance will be implemented as follows.
(1)	Monetary grants to the Tokyo Star Bank: 6.9 billion yen (scheduled for July 15, 2002)
(2)	Purchase of assets from the Tokyo Credit Cooperative: 2.0 billion yen (scheduled for July 15, 2002)

6.	Financial assistance in the transfer of business from the Tokyo Chuo Credit Cooperative to the Tokyo Star Bank
	Following a joint application by the Tokyo Star Bank (Head Office: Minato Ward, Tokyo) and the Tokyo Chuo Credit Cooperative (Head Office: Chiyoda Ward, Tokyo) on March 15, 2002, financial assistance will be implemented as follows.
(1)	Monetary grant to the Tokyo Star Bank: 8.8 billion yen (scheduled for July 22, 2002)
(2)	Purchase of assets from the Tokyo Chuo Credit Cooperative: 1.0 billion yen (scheduled for July 22, 2002)

7.	Financial assistance in the transfer of business from the Daisan Credit Cooperative to the Kosan Shinkin Bank and the Dai Tokyo Credit Cooperative
	Following a joint application by the Kosan Shinkin Bank (Head Office: Chiyoda Ward, Tokyo), Dai Tokyo Credit Cooperative (Head Office: Minato Ward, Tokyo) and the Daisan Credit Cooperative (Head Office: Chuo Ward, Tokyo), on March 22, 2002, financial assistance will be implemented as follows.
(1)	Monetary grants to the Kosan Shinkin Bank and the Dai Tokyo Credit Cooperative: 7.8 billion yen (scheduled for July 15, 2002)
(2)	Purchase of assets from the Daisan Credit Cooperative: 3.9 billion yen (scheduled for July 15, 2002)

8.	Financial assistance in the transfer of business from the San-ei Credit Cooperative to the Dai Tokyo Credit Cooperative
	Following a joint application by the Dai Tokyo Credit Cooperative (Head Office: Minato Ward, Tokyo) and the San-ei Credit Cooperative (Head Office: Suginami Ward, Tokyo) on March 22, 2002, financial assistance will be implemented as follows.
(1)	Monetary grant to the Dai Tokyo Credit Cooperative: 25.1 billion yen (scheduled for May 27, 2002)
(2)	Purchase of assets from the San-ei Credit Cooperative: 9.1 billion yen (scheduled for May 27, 2002)

9.	Financial assistance in the transfer of business from the Tokyo Shokuhin Credit Cooperative to the Saikyo Shinkin Bank and 3 other shinkin banks
	Following a joint application by the Saikyo Shinkin Bank (Head Office: Shinjuku Ward, Tokyo), the Asahi Shinkin Bank (Head Office: Daito Ward, Tokyo), the Kosan Shinkin Bank (Head Office: Chiyoda Ward, Tokyo), the Tokyo Sangyo Shinkin Bank (Head Office: Meguro Ward, Tokyo) and the Tokyo Shokuhin Credit Cooperative (Head Office: Shinjuku Ward, Tokyo) on March 15, 2002, financial assistance will be implemented as follows.
(1)	Monetary grants to the Saikyo Shinkin Bank and 3 other shinkin banks: 12.7 billion yen (scheduled for July 8, 2002)
(2)	Purchase of assets from the Tokyo Shokuhin Credit Cooperative: 7.8 billion yen (scheduled for July 8, 2002)

10.	Financial assistance in the transfer of business from the Ikebukuro Credit Cooperative to the Tokyo Sankyo Shinkin Bank
	Following a joint application by the Tokyo Sankyo Shinkin Bank (Head Office: Shinjuku Ward, Tokyo) and the Ikebukuro Credit Cooperative (Head Office: Toshima Ward, Tokyo) on March 22, 2002, financial assistance will be implemented as follows.
(1)	Monetary grant to the Tokyo Sankyo Shinkin Bank: 14.0 billion yen (scheduled for June 17, 2002)
(2)	Purchase of assets from the Ikebukuro Credit Cooperative: 6.3 billion yen (scheduled for June 17, 2002)

11.	Financial assistance in the transfer of business from the Tomin Credit Cooperative to the Arakawa Shinkin Bank and 3 other financial institutions
	Following a joint application by the Arakawa Shinkin Bank (Head Office: Arakawa Ward, Tokyo), the Nikko Shinkin Bank (Head Office: Arakawa Ward, Tokyo), the Saikyo Shinkin Bank (Head Office: Shinjuku Ward, Tokyo), the Dai-ichi Kangyo Credit Cooperative (Head Office: Shinjuku Ward, Tokyo), and the Tomin Credit Cooperative (Head Office: Arakawa Ward, Tokyo) on March 22, 2002, financial assistance will be implemented as follows.
(1)	Monetary grants to the Arakawa Shinkin Bank and 3 other financial institutions: 34.3 billion yen (scheduled for June 17, 2002)
(2)	Purchase of assets from the Tomin Credit Cooperative: 22.3 billion yen (scheduled for June 17, 2002)

12.	Financial assistance in the transfer of business from the Atsugi Credit Cooperative to the Hiratsuka Shinkin Bank
	Following a joint application by the Hiratsuka Shinkin Bank (Head Office: Hiratsuka City, Kanagawa Prefecture) and the Atsugi Credit Cooperative (Head Office: Atsugi City, Kanagawa Prefecture) on March 22, 2002, financial assistance will be implemented as follows.
(1)	Monetary grant to the Hiratsuka Shinkin Bank: 8.4 billion yen (scheduled for August 12, 2002)
(2)	Purchase of assets from the Atsugi Credit Cooperative: 9.3 billion yen (scheduled for August 12, 2002)

13.	Financial assistance in the transfer of business from the Ueda Shoko Credit Cooperative to the Nagano-ken Credit Cooperative and 4 other financial institutions
	Following a joint application by the Nagano-ken Credit Cooperative (Head Office: Nagano City, Nagano Prefecture), the Mikoma Credit Cooperative (Head Office: Nirasaki City, Yamanashi Prefecture), the Nagano Shinkin Bank (Head Office: Nagano City, Nagano Prefecture), the Ueda Shinkin Bank (Head Office: Ueda City, Nagano Prefecture), the Hachijuni Bank (Head Office: Nagano City, Nagano Prefecture), and the Ueda Shoko Credit Cooperative (Head Office: Ueda City, Nagano Prefecture), on March 26, 2002, financial assistance will be implemented as follows.
(1)	Monetary grant to the Nagano-ken Credit Cooperative and 4 other financial institutions: 16.3 billion yen (scheduled for August 5, 2002)
(2)	Purchase of assets from the Ueda Shoko Credit Cooperative: 15.5 billion yen (scheduled for August 5, 2002)

14.	Financial assistance in the transfer of business from the Kansai Kogin Credit Cooperative to the Resolution and Collection Corporation and the Kinki Sangyo Credit Cooperative
	Following a joint application by the Resolution and Collection Corporation (Head Office: Nakano Ward, Tokyo), the Kinki Sangyo Credit Cooperative (Head Office: Kyoto City, Kyoto Prefecture) and the Kansai Kogin Credit Cooperative (Head Office: Osaka City, Osaka Prefecture) on March 29, 2002, financial assistance will be implemented as follows.
(1)	Monetary grant to the Resolution and Collection Corporation and the Kinki Sangyo Credit Cooperative: 683.4 billion yen (scheduled for June 17, 2002)
(2)	Purchase of assets from the Kansai Kogin Credit Cooperative: 148.3 billion yen (scheduled for June 17, 2002)

15.	Financial assistance in the transfer of business from the Kyoto Shogin Credit Cooperative to the Resolution and Collection Corporation and the Kinki Sangyo Credit Cooperative
	Following a joint application by the Resolution and Collection Corporation (Head Office: Nakano Ward, Tokyo), the Kinki Sangyo Credit Cooperative (Head Office: Kyoto City, Kyoto Prefecture) and the Kyoto Shogin Credit Cooperative (Head Office: Kyoto City, Kyoto Prefecture) on March 29, 2002, financial assistance will be implemented as follows.
(1)	Monetary grant to the Resolution and Collection Corporation and the Kinki Sangyo Credit Cooperative: 50.3 billion yen (scheduled for May 27, 2002)
(2)	Purchase of assets from the Kyoto Shogin Credit Cooperative: 10.3 billion yen (scheduled for May 27, 2002)

16.	Financial assistance in the transfer of business from the Ishikawa Tobacco Credit Cooperative to the Hokkoku Bank
	Following a joint application by the Hokkoku Bank (Head Office: Kanazawa City, Ishikawa Prefecture) and the Ishikawa Tobacco Credit Cooperative (Head Office: Kanazawa City, Ishikawa Prefecture) on March 20, 2002, financial assistance will be implemented as follows.
(1)	Monetary grant to the Hokkoku Bank: 0.7 billion yen (scheduled for July 22, 2002)
(2)	Purchase of assets from the Ishikawa Tobacco Credit Cooperative: 0.5 billion yen (scheduled for July 22, 2002)

17.	Financial assistance in the transfer of business from the Nagashima Shinkin Bank to the Kihoku Shinkin Bank
	Following a joint application by the Kihoku Shinkin Bank (Head Office: Owase City, Mie Prefecture) and the Nagashima Shinkin Bank (Head Office: Kii Nagashima Cho, Kitamuro Gun, Mie Prefecture) on March 26, 2002, financial assistance will be implemented as follows.
(1)	Monetary grant to the Kihoku Shinkin Bank: 2.9 billion yen (scheduled for June 3, 2002)
(2)	Purchase of assets from the Nagashima Shinkin Bank: 0.4 billion yen (scheduled for June 3, 2002)

18.	Financial assistance in the transfer of business from the Shin-ei Shinkin Bank to the Nisshin Shinkin Bank
	Following a joint application by the Nisshin Shinkin Bank (Head Office: Akashi City, Hyogo Prefecture) and the Shin-ei Shinkin Bank (Head Office: Kobe City, Hyogo Prefecture) on March 25, 2002, financial assistance will be implemented as follows.
(1)	Monetary grant to the Nisshin Shinkin Bank: 4.3 billion yen (scheduled for May 20, 2002)
(2)	Purchase of assets from the Shin-ei Shinkin Bank: 4.4 billion yen (scheduled for May 20, 2002)

19.	Financial assistance in the transfer of business from the Saiki Shinkin Bank to the Oita Shinkin Bank
	Following a joint application by the Oita Shinkin Bank (Head Office: Oita City, Oita Prefecture) and the Saiki Shinkin Bank (Head Office: Saiki City, Oita Prefecture) on March 26, 2002, financial assistance will be implemented as follows.
(1)	Monetary grant to the Oita Shinkin Bank: 9.3 billion yen (scheduled for June 10, 2002)
(2)	Purchase of assets from the Saiki Shinkin Bank: 2.8 billion yen (scheduled for June 10, 2002)

(Note)

"Monetary grants" will be provided to assuming financial institutions that take over the business of failed financial institutions based on Article 64 of the Deposit Insurance Law and Article 16 of the Supplementary Provisions, with the purpose of protecting depositors and others. Under "purchase of assets", meanwhile, the DICJ may purchase some of the assets owned by the failed financial institutions. Under Articles 10, Paragraph 2 and Article 7, Paragraph 1 of the Deposit Insurance Law Supplementary Provisions, the DICJ may commission purchase and collection to the Resolution and Collection Corporation (RCC), and may guarantee the RCC's liabilities with respect to the payment for such purchase.

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The eligibility of the above nineteen cases of financial assistance was confirmed by the Commissioner of the Financial Services Agency. 1, 2, 5, 6, 7 and 9 were approved on March 15, 2002, 4, 8, 10, 11, 12, 13, 16, 17, 18 and 19 were approved on March 20, 2002, and 3, 14 and 15 were approved on March 28, 2002. The need for special financial assistance (financial assistance exceeding the pay-out cost, under Article 16 of the Deposit Insurance Law Supplementary Provisions) in cases 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 14, 15, 17 and 18 were confirmed by the Commissioner of the Financial Services Agency and the Minister of Finance on April 16, 2002. On this basis, the above decisions on financial assistance were made after careful scrutiny of the application details, etc.

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Including the financial assistance approved today, 165 cases of failure have been resolved by the DICJ to date, with around 17,695.0 billion yen in monetary grants, around 5,942.5 billion yen of assets purchased, and 12 billion yen for other operations (subscription of debts: 4 billion yen, loans: 8 billion yen) as the cumulative total of all financial assistance.

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The DICJ believes that the financial assistance approved today will help to protect depositors and to maintain financial stability through the smooth implementation of business transfers.
The DICJ will maintain close collaboration with the RCC and extend support as well as guidance (including the application of asset investigation stipulated by Article 14-2 of the Deposit Insurance Law Supplementary Provisions) so that the RCC would be able to achieve its business purpose more effectively and smoothly.

(1)

Scheme of financial assistance in the transfer of business from the Akita-ken Chuo Credit Cooperative to the Akita Shinkin Bank

(2)

Scheme of financial assistance in the transfer of business from the Tochigi-ken Chuo Credit Cooperative to the Tochigi Bank

(3)

Scheme of financial assistance in the transfer of business from Chiba-ken Shoko Credit Cooperative to the Tokyo Star Bank and the Choshi Shoko Credit Cooperative

(4)

Scheme of financial assistance in the transfer of business from the Chiba Shogin Credit Cooperative to the Yokohama Shogin Credit Cooperative

(5)

Scheme of financial assistance in the transfer of business from the Tokyo Credit Cooperative to the Tokyo Star Bank

(6)

Scheme of financial assistance in the transfer of business from the Tokyo Chuo Credit Cooperative to the Tokyo Star Bank