General Account

This account is used to make insurance payment and provide financial assistance up to the amount of expenses estimated to be incurred in protecting deposits (insurance payment cost) in the event of the failure of a financial institution. The special operations account, which accounted for such operations as the provision of financial assistance in excess of the insurance payment cost, was abolished at the end of FY2002, and the assets and liabilities related to that account have been transferred to the General Account. Revenues in FY2010 totaled ¥722.1 billion, including ¥679.3 billion in insurance premium revenues from financial institutions, and ¥33.1 billion in profits transferred from a contracted bank (RCC) in relation to the assets acquired by it. On the other hand, expenses totaled ¥448.8 billion, including ¥268.7 billion in provisions for loan loss reserves associated with loan loss reserves set aside in relation to loans to financial institutions under management, ¥137.3 billion in provisions for liability reserves, and ¥33.9 billion in payments to the national treasury of revenues of profits transferred from a contracted bank, etc. Consequently, the account cleared retained loss that stood at ¥273.2 billion at the end of FY2009 and set aside liability reserves of ¥137.3 billion.

Crisis Management Account

This account is for operations executed in response to financial crises after deliberation by the Council for Financial Crises and approval by the Prime Minister (capital injections and financial assistance in excess of the insurance payment cost) and contributions from financial institutions. Revenues in FY2010 totaled ¥123.1 billion, including ¥94.1 billion in profits from the sale of Resona Holdings shares held by the DICJ and ¥28.8 billion in dividend income from Resona Holdings shares held by the DICJ, etc. On the other hand, expenses came to ¥4.9 billion, including interest payments on funds raised for the acquisition of Resona Holdings shares. Consequently, net profit came to ¥118.2 billion, increasing retained earnings at the end of FY2010 to ¥246.4 billion from ¥128.2 billion in FY2009.

Jusen Account

This account is for operations related to the claim resolution company (RCC), which conducts management/collection/disposal, etc., of loan and other claims transferred from the seven former Jusen companies, including the provision of subsidies, guarantee of debts related to borrowings, and collection of transfer payments. Revenues in FY2010 totaled ¥7.9 billion, including ¥3.5 billion in investment return from the Financial Stabilization Contribution Fund. On the other hand, expenses totaled ¥31.7 billion, including ¥27.8 billion in operations promotion subsidy for half of the secondary losses incurred by the RCC in FY2009 based on Article 10 of the Jusen Act. Consequently, net loss came to ¥23.8 billion, increasing retained loss at the end of FY2010 to ¥456.5 billion from ¥432.7 billion in FY2009. The operations promotion subsidy is allocated from the investment return from the Financial Stabilization Contribution Fund. However, as investment profits totaled only ¥3.5 billion in FY2010, cumulative accounts payable related to the operations promotion subsidy came to ¥456.5 billion at the end of FY2010.

Financial Revitalization Account

This account is for such operations as disposals related to banks under special public management and purchases of assets from sound financial institutions and other entities based on Article 53 of the Financial Revitalization Act. Assets and liabilities related to capital injection based on the former Financial Function Stabilization Act (abolished October 23, 1998) have been transferred to this account. Revenues in FY2010 totaled ¥62 billion, including ¥17.5 billion in asset purchase operation revenues, such as dividend revenues from shares purchased from banks under special public management, ¥5.5 billion in revenues from the transfer of collection profit on assets which the specified contracted bank (RCC) purchased from sound financial institutions and other entities and ¥38.8 billion in the reversal of loan loss reserves. On the other hand, expenses totaled ¥50.2 billion, including ¥11.1 billion in interest payments on funds raised for the acquisition of the warranty against defects and other claims purchased from banks under special public management and ¥32.7 billion transferred to loan loss reserves. Consequently, net profit came to ¥11.8 billion, with the retained loss at the end of FY2010 falling to ¥287.8 billion from ¥299.7 billion in FY2009.

Early Strengthening Account

This account is for such operations as the lending of funds to a contracted bank (RCC) related to capital injection based on the Early Strengthening Act. Revenues in FY2010 totaled ¥30.5 billion, including ¥10.6 billion in transfer payments made by the contracted bank in relation to capital injection. On the other hand, expenses came to ¥8.5 billion, including interest payments on funds raised for the provision of loans to the contracted bank. Consequently, net profit came to ¥21.9 billion, increasing retained earnings at the end of FY2010 to ¥1,551.3 billion from ¥1,529.4 billion in FY2009.

Financial Functions Strengthening Account

This account is for such operations as the lending of funds to a contracted bank (RCC) related to capital injection based on the Financial Function Strengthening Act. The Financial Institutions’ Management Base Strengthening Account (hereinafter referred to as the “Management Base Strengthening Account), which accounted for special financial assistance and other operations based on the Organizational Restructuring Act, was abolished at the end of FY2004, with its assets and liabilities transferred to this account. Revenues in FY2010 totaled ¥672 million, including ¥91 million in transferred profits related to capital injection from the contracted bank under the Financial Function Strengthening Act. Meanwhile, expenses came to ¥756 million including interest payments on funds raised for the provision of loans to the contracted bank. Consequently, this account recorded a net loss of ¥83 million, with retained earnings at the end of FY2010 decreasing to ¥1,007 million from ¥1,090 million in FY2009.

Damage Recovery Distribution Account

This account is for such operations as posting public notices related to the start of procedures for the extinction of claims on deposits in order to facilitate the payment of benefits to victims of criminal acts such as bank transfer fraud. Revenues in FY2010 totaled ¥1,759 million, including ¥1,561 million in transfer payments made by financial institutions in relation to the balance of damage-recovery benefits to be distributed to victims. On the other hand, expenses came to ¥159 million including expenses necessary for such items as public notices related to the start of procedures for the extinction of claims on deposits. Consequently, net profit came to ¥1,600 million, with retained earnings increasing to ¥4,247 million at the end of the FY2010 from ¥2,647 million in FY2009.

Enterprise Turnaround Initiative Corporation Account

This account is for such operations as the provision of capital to Enterprise Turnaround Initiative Corporation of Japan based on the Act on Enterprise Turnaround Initiative Corporation of Japan. Revenues in FY2010 included only ¥369 in non-operating revenue. On the other hand, expenses amounted to ¥4 million in general administrative expenses. Consequently, this account recorded a net loss of ¥4 million, with the deficit in this account increasing to ¥6 million at the end of FY2010 from ¥2 million in FY2009.