Date: March 31, 2010
Statement by the Governor Insurance Premium Rates
The DICJ’s Policy Board held on March 26, 2010 has set the insurance premium rate for “general deposits and others” at 0.082%. 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 FY2010.  The rate for “deposits for payment and settlement purposes,” on the other hand, will remain unchanged at 0.107% in FY2010. In view of the DICJ’s financial conditions (general account) remaining in deficits (estimated deficits for FY2009: ¥0.3 trillion), the amendment in insurance premium rates reflects trends in outstanding balance of insured 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 and others” 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” are current, ordinary and specified deposits, and “other deposits, etc.” are deposits other than specific deposits such as time deposits.  Up to FY2004, “deposits for payment and settlement purposes” had been the same as “specific deposits”and “general deposits and others” as “other deposits, etc.” (In FY2004, including specified settlement obligations provided for in Article 69-2, paragraph 1 of the Deposit Insurance Act). From FY2005 onward, “deposits for payment and settlement purposes”comprised of deposits meeting three requirements – zero-interest, payable on demand, and capable of providing settlement services and specified settlement obligations, and “general deposits and others,” comprised deposits and others other than those for payment and settlement purposes such as time deposits. Note 2: Including a rate (0.036%) of special insurance premium (premium provided for in Article 19, paragraph 1 of the Supplementary Provisions of the Deposit Insurance Act), which had been set during the period from FY1996 to FY2001. The rate for FY2002 is the weighted average of “specific deposits” and “other deposits, etc.” and from FY2003 onward, that of “deposits for payments and settlement purposes” and “general deposits and others.”
	Reference 2: Trend of Insurance Premium Income (¥ billion)   Insurance Premium Income FY2004 529.3 FY2005 537.7 FY2006 540.4 FY2007 566.6 FY2008 611.6 FY2009 641.1 Note 1: Figures are rounded off. Note 2: Figure for FY2009 is an estimated amount. Note 3: Deposit insurance premiums are calculated by multiplying the daily-average balances of deposits for deposit and settlement purposes and general deposit and others of each financial institution in the previous fiscal year by the premium rate of each deposit type.