Minutes of the 273rd Policy Board Meeting of the DICJ

Date of resolution: June 24, 2020 (Wednesday), 16:00 - 17:04

Resolutions

1. Settlement of accounts for Fiscal Year 2019

  • The head of the department in charge provided explanations about major profit and loss transactions and financial conditions of nine accounts regarding settlement of accounts for Fiscal Year 2019.
(Unit: ¥100million)
Expenses/Revenues Financial Conditions
Account Expenses Revenues Unappropriated Current Profit or Undisposed-of Current Deficit (-) Surplus or Deficit (-)
General Account 3,821 3,821 -
(Transfer to liability reserves 3,696)
Liability reserves
43,572
Crisis Management Account 4 0 -4 3,681
Financial Revitalization Account 188 520 332 124
Early Strengthening Account 0 1 1 7,928
Financial Functions Strengthening Account 2 61 58 560
Damage Recovery Distribution Account 2 2 0 0
Regional Economy Vitalization Corporation Account 0.05 0 -0.05 -0.18
Revitalizing Earthquake-Affected Business Account 0.005 0 -0.005 -0.04
Dormant Deposits,etc. Management Account 1,457 1,457 - -13

Note: Figures are rounded off.

  • The auditor made a statement to the effect that, as a result of auditing financial statements and statements of settlement accounts of the Deposit Insurance Corporation of Japan (“the DICJ”) in Fiscal Year 2019, the contents were appropriate.
  • Deliberations on “Resolutions (Proposal) 1” were conducted after questions and opinions were solicited from the Policy Board members, and the resolution was adopted as proposed.

2.Decision on the purchase of specified difficult recovery claims from financial institutions

  • The head of the department in charge provided the following explanations:
    This resolution concerns the system under which the DICJ purchases specified difficult recovery claims held by financial institutions. The DICJ will purchase assets for which financial institutions have recently applied.

    The Committee for Screening Purchase of Specified Difficult Recovery Claims, a third-party organization, had conducted deliberations on the appropriateness of the purchase of the relevant specified difficult recovery claims and on the purchase prices, and the Committee had expressed to the DICJ Governor its opinion that the said purchase would be appropriate.

  • Deliberations on "Resolution (Proposal) 2" were conducted after questions and opinions were solicited from the Policy Board members, and the resolution was adopted as proposed.

3.Terms applicable when entrusting the purchase of specified difficult recovery claims to the Resolution and Collection Corporation

  • The head of the department in charge provided the following explanations:
    This resolution establishes the terms applicable when entrusting the purchase of the specified difficult recovery claims noted in 2. above to the Resolution and Collection Corporation. Under this resolution, the purchase price would be presented by the DICJ, any profit arising in relation to the purchased assets would be paid to the DICJ, and the DICJ would compensate for any loss that might arise.

  • Deliberations on "Resolution (Proposal) 3" were conducted after questions and opinions were solicited from the Policy Board members, and the resolution was adopted as proposed.

4.Decision on fee under the Criminal Accounts Damage Recovery Act

  • The head of the department in charge provided the following explanation:
    Concerning the fee based on the Criminal Accounts Damage Recovery Act, the fee per public announcement is calculated by dividing the total annual amount of expenditures the DICJ needed for public announcement operations by the total annual number of the applicable public announcements.

    When we divided the total annual amount of expenditures in Fiscal Year 2019 which was ¥136,603,620 by the total annual number of the public announcements of this Fiscal Year which was 27,331, we got ¥4,998.1 as the fee per public announcement. We rounded up the figure and judged that the fee per applicable public announcement was ¥4,999.

  • Deliberations on "Resolution (Proposal) 4" were conducted after questions and opinions were solicited from the Policy Board members, and the resolution was adopted as proposed.

Reports

1.Performance Evaluation Report for Fiscal Year 2019

  • The head of the department in charge noted that “we prepare the Performance Evaluation Report from the perspective of evaluating operations which were conducted based on the Operational Policy and utilizing the evaluation results in the operations in the following fiscal years,” and reported on the main points of the Performance Evaluation Report of Fiscal Year 2019.

2.Outline of the Act to partially revise the Act on Special Measures for Strengthening Financial Functions

  • The head of the department in charge provided report about recent partial revision on the Financial Functions Strengthening Act in order to deal with COVID-19 pandemic.

  • Also, the head reported that, along with the enforcements of the Act, he was going to ask the Policy Board to deliberate ① partial amendments to the Articles of Incorporation of the DICJ, ② partial amendments to the Operational Guidelines related to the Act, and ③ amendments to the budget and funding plans of fiscal year 2020.

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