The Third (and the Final) Settlement Payment Related to the Purchase of Deposits and Other Claims of Former Incubator Bank of Japan

Press Release

Date: September 23, 2016

The Deposit Insurance Corporation of Japan (hereinafter referred to as “the DICJ”) decided to make the third (and the final) settlement payment related to the purchase of deposits and other claims of the Liquidated Company of the Incubator Bank of Japan (former Incubator Bank of Japan, hereinafter referred to as “LCIBJ”).

1. Outline

Following the failure of LCIBJ, the DICJ purchased uninsured portion of deposits upon requests by the depositors (“the estimated proceeds payment”). For those uninsured deposits that the DICJ purchased, if the DICJ receives from LCIBJ repayments beyond the amount of the estimated proceeds payments, the DICJ makes additional payment to the depositors who received the estimated proceeds payments, based on the repayment amount (“settlement payment”).

LCIBJ has been making the final repayments since September 20, 2016 based on its rehabilitation plan (repayment rate: 2.95686%). Since the DICJ received repayment concerning the estimated proceeds payments as scheduled, the DICJ is going to make the third settlement payment to those who received the estimated proceeds payment.

2. Details of the Third (and the Final) Settlement Payment

(1) Total amount of payment

¥0.28 billion

(2) Schedule

The DICJ will mail immediately those documents which are required to fill to receive settlement payment to the qualified depositors.

Upon receipt of those documents filled, including the application form requesting the settlement payment from the qualified depositors by mail, the DICJ will remit the amount of the settlement payment to the designated bank accounts without delay (the bank remittance fee will be borne by the DICJ).

The payment is valid from September 26, 2016 to December 26, 2016. The qualified depositors for the settlement payment are required to send the documents back to the DICJ so that the DICJ during the aforementioned period.

3. Important notice

The final repayment of LCIBJ means that all assets of LCIBJ were liquidated. Therefore, the settlement payment the DICJ implements this time (the third settlement payment) represents the final payment.

Status of the purchase of deposits and other claims (the estimated proceeds payment) and the settlement payment
  Purchase period/
Payment period
Total payment amount
Estimated proceeds payment December 13, 2010 -  March 31, 2011 ¥2.43 billion
(the amount of deposits and other claims multiplied by the estimated proceeds payment rate <25%>)
The first settlement payment April 10, 2012 - June 29, 2012 ¥1.36 billion
(the difference between the first repayment amount  <repayment rate: 39%> and the estimated proceeds payment amount)
The second settlement payment October 6, 2014 - January 16, 2015 ¥1.85 billion
(the interim repayment amount <repayment rate: 19%>)
[This time]
The third settlement payment (final)
September 26, 2016 - December 26, 2016 ¥0.28 billion
(the final repayment amount <repayment rate: 2.95686%>)

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