Basic Policy on DICJ’s Onsite Inspections

The basic policy of DICJ’s onsite inspections is as follows: We implement inspections focusing on the status of preparation for measures (Note) required for financial institutions to make smooth deposit reimbursements, etc. should insurable contingencies occur from the perspective of the protection of depositors, and also focusing on items which are influential in failure resolution so that those inspections will be implemented efficiently and effectively.

Specifically, we improve the efficiency and effectiveness of onsite inspections by the following measures: Considering the core banking system adopted by financial institutions, we decide the financial institutions to be inspected and the scope of examination in a prioritized manner. Also, we fully utilize results obtained through various related measures, including “follow-up interview for improvement”, “database verification”, “training and advice, etc.”, and “confirmation of the status of preparation of procedures and manuals.” In addition, we make efforts in full use of offsite monitoring.

Also, we implement inspections under the Act on Damage Recovery Benefit Distributed from Fund in Bank Accounts Used for Crimes for a purpose to ensure appropriateness of business operations concerning financial institutions’ payments for damage recovery benefits.

Furthermore, we implement inspections under the Act on Utilization of Funds Related to Dormant Deposits to Promote Public Interest Activities by the Private Sector for a purpose to ensure appropriateness of procedures for transfer and management of funds related to dormant deposits, etc.

(Note) These measures include separate management of insured and uninsured deposits, development of systems for preparing data on changes of deposits, etc. (detailed statement files on deposits and withdrawals), and preparation for offsetting of deposits against loans and purchase of deposits and other claims (estimated proceeds payment).

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