Date: March 31, 2009
Statement by the Governor Insurance Premium Rates
	The DICJ’s Policy Board held on March 25, 2009 has set the insurance premium rate for “deposits for payment and settlement purposes” at 0.107%. The rate was approved by the Commissioner of the Financial Services Agency and the Minister of Finance today. The amended rate will be effective from FY2009. The rate for “general deposits”, on the other hand, will remain unchanged at 0.081% in FY2009. In view of the DICJ’s financial conditions (general account) remaining in significant deficits (estimated deficits for FY2008: ¥0.9 trillion) the amendment in insurance premium rates reflects trends in outstanding balance of insured deposits (a decrease in “deposits for payment and settlement purposes” and an increase in “general deposits”) while the following basic concepts have been sustained:
1.	Overall effective premium rate shall be maintained at the current level of 0.084%.
2.	Insurance premium rates shall be set so that the insurance premium burden per yen of “deposits for payment and settlement purposes” for which full protection is given and that of “general deposits” for which limited coverageNote is provided are the same. (Note) The total of principal up to ¥10 million, plus interest thereon
	Reference 1: Trend of Insurance Premium Rates Note 1: “Specific deposits” represent current deposits, ordinary deposits and sundry deposits. “Other deposits” are all the time and savings deposits other than those included in specific deposits. “Deposits for payment and settlement purposes” and “general deposits” were same as “specific deposits” and “other deposits”, respectively, until FY2004. (Specific settlement obligations pursuant to Paragraph 1, Article 69-2 of Deposit Insurance Law were included in “deposits for payment and settlement purposes” for FY2004.) From FY2005 on, “deposits for payment and settlement purposes” include deposits that meet the three conditions of “bearing no interest, being redeemable on demand, and providing normally required payment and settlement services” and “specific settlement obligations” while “general deposits” represent all the time and savings deposits, excluding payment and settlement deposits. Note 2: Effective premium rates for the period from FY1996 to FY2001 include special insurance premium (0.036%) levied during the period. Effective premium rate for FY2002 is a weighted average of “specific deposits” and “other deposits”, and those for FY2003 on, a weighted average of “deposits for payment and settlement purposes” and “general deposits”.
	Reference 2: Trend of Insurance Premium Income (¥ billion)   Insurance Premium Income FY2003 522.1 FY2004 529.3 FY2005 537.7 FY2006 540.4 FY2007 566.6 FY2008 611.6 Note 1: Figures are rounded off. Note 2: Figure for FY2008 is an estimated amount. Note 3: Deposit insurance premiums are calculated by multiplying the daily-average balances of deposits for settlement purposes and general deposit of each financial institution in the previous fiscal year by the premium rate of each deposit type.