Subsidiaries of the DICJ

The DICJ established subsidiaries as follows.

The Resolution and Collection Corporation (RCC)

The Resolution and Collection Corporation (RCC) was established as a wholly owned subsidiary of the DICJ through a merger between the Housing Loan Administration Corporation (HLAC) and the Resolution and Collection Bank (RCB) on April 1, 1999.

In addition to the main operations that are management, collection and disposal of the assets purchased from failed financial institutions, etc., and capital injection to the financial institutions, etc., the enforcement of the revised Deposit Insurance Act (in October 2011) has enabled the RCC to operate the functions of the bridge bank, and to purchase and collection of specified difficult recovery claims held by financial institutions.

The DICJ has been making efforts in collecting non-performing loans through providing the RCC with guidance and advice for the recovery of loans, cooperating with the RCC in pursuing the criminal and/or civil liabilities of the parties concerned and investigating hidden assets of debtors based on its right to conduct an asset investigation.

Regional Economy Vitalization Corporation of Japan (REVIC)

The DICJ established a subsidiary, Enterprise Turnaround Initiative Corporation of Japan (ETIC) on October 14, 2009 in accordance with the provisions of Article 51 of the Act on Enterprise Turnaround Initiative Corporation of Japan. In March 2013, ETIC was reorganized as Regional Economy Vitalization Corporation of Japan (REVIC) as a result of the enactment of the partial revision of the Act on Enterprise Turnaround Initiative Corporation of Japan.

REVIC will provide support for vitalization of local enterprises operations by assessing their assets, assisting formulation of their operation and finance restructuring plans, coordinating their creditors and other stakeholders, and rendering human and financial support to them, in an impartial and neutral manner. The enactment of the revised Act has enhanced the functions of REVIC to vitalize local economies.

Corporation for Revitalizing Earthquake-Affected Business

In February 2012, the DICJ established Corporation for Revitalizing Earthquake-Affected Business with Agricultural and Fishery Cooperative Savings Insurance Corporation in accordance with the provisions of Article 47 of the Act on the Corporation for Revitalizing Earthquake-Affected Business. The DICJ later increased its investment in Corporation for Revitalizing Earthquake-Affected Business.

Corporation for Revitalizing Earthquake-Affected Business will provide support for revitalization of enterprises which have got overextended with debt by suffering damage from the Great East Japan Earthquake and ensure the rehabilitation of their business in the area, by reducing burden of debt through purchasing loans from financial institutions and others.

Specific bridge companies (five companies)

In May 2014, the Deposit Insurance Corporation of Japan (DICJ) established five specific bridge companies (see below), in response to the Financial Services Agency Commissioner’s decision to the effect that “the DICJ should establish, as its subsidiaries, five specific bridge companies that implement such operations as taking over businesses for the purpose of the transfer of debts from financial institutions under special oversight, etc. based on Article 126-34, paragraph (1) of the Deposit Insurance Act.”

The establishment of the specific bridge companies follows the effectuation (March 2014) of the revised Deposit Insurance Act, which puts in place measures concerning the orderly resolution of assets and liabilities of financial institutions, etc.