Record of Debt Recovery and Pursuit of Liability

Collection Performance of Debt,etc.

In accordance with the Deposit Insurance Act, the Financial Revitalization Act and others, the DICJ provides necessary guidance and advice to the Resolution and Collection Corporation (RCC, established as a result of the merger of the Housing Loan Administration Corporation and the Resolution and Collection Bank on April 1, 1999; the DICJ is the sole shareholder of the RCC) so that the RCC would manage and recover debts. The first half of FY2023, the RCC recovered ¥7.5 billion debts purchased from failed or sound financial institutions (cumulative total including debts transferred from the former Jusen companies: ¥10,191.1 billion).

The RCC strives for proper recovery of debts by being fully aware of debtors’ situation and conducting a consultation for debtors’ plan for repayment in consideration of their creditworthiness.

Asset Investigation

The DICJ, commissioning and providing the guidance and advice to the RCC, supports the RCC’s collection activities to uncover the hidden assets of debtors, by way of exercising the authority to conduct asset investigations. As of the end of September 2023, the DICJ has uncovered hidden assets of ¥729.3 billion worth in accumulated base since 1996.

■Results of Investigations(Accumulated total since 1996)

(as of September 30, 2023)
Number of investigations initiated Confirmed assets
2,968 ¥729.3 billion

Notes: In FY2015, the accounting standard of confirmed assets was revised (the amounts of some confirmed assets in the past fiscal years were calculated to a verifiable extent), with the upper limit set at the amount of assets for which claims can be made.

Pursuit of Civil and Criminal Liability

The DICJ and the RCC have been pursuing: 1) the civil and criminal liabilities against executives who had set the stage for the failure of financial institutions, and 2) criminal liabilities against debtors who interfered recovery of claims, malicious debtors who concealed assets, etc.
From June 1996 to September 30, 2023, the DICJ has brought 127 cases for civil compensation, amounting to ¥132.6 billion.
Also, during the same period, the DICJ has brought criminal charges against 767 persons in 377 cases for illegal actions such as auction interference, obstruction of law enforcement and breach of trust.

Liability Investigation Committee

The Liability Investigation Committee, chaired by the Governor of the DICJ, was established within the DICJ in February 1998 with the purpose of clarifying the civil and criminal liability of executives of failed financial institutions, former Jusen companies, and debtors, and properly implementing compensation claims, criminal accusations, and other requisite measures. Currently, external experts are appointed as special advisers.

Thus far, the Liability Investigation Committee has met on 109 occasions to discuss a basic policy for the pursuit of liability as well as propriety of compensation claims and criminal accusations for each case. And based on the results of the discussions, the DICJ and/or the RCC filed actions for compensation claims and criminal accusations, which have been producing good results.

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