Global Banking News-November 19, 2014--Germany gets new
deposit insurance lawThe bill also modified the
deposit insurance law to allow the Deposit Insurance Corporation of Japan to invest public funds in securities and insurance companies to help prevent financial crises.
Currently, an injection of public funds into a single bank is allowed only when there are fears of a financial system crisis, according to Section 102 of the
Deposit Insurance Law.
An FDIC spokesman said, "The bank should have let these people know (when they took out the mortgage) that this was subject to the
deposit insurance law.
After the revision of the
Deposit Insurance Law in December 2002, the insurance of Entirely Insured Deposits, an explicit legal obligation of DIC, is now covered by permanent legislation.
The bill to revise the
deposit insurance law was compiled in response to the collapse of U.
Finance Minister Masajuro Shiokawa said Tuesday that the government should consider revising the
Deposit Insurance Law or enacting a new law to pave the way for replenishing banks' depleted capital with public funds to accelerate their bad-loan disposal.
The bank, set up in 2004 by former BOJ official Kimura, who was a key adviser to financial services minister Heizo Takenaka in the government of then Prime Minister Junichiro Koizumi, filed for bankruptcy proceedings with the FSA under the
Deposit Insurance Law after an impromptu board meeting Friday morning, it said.
The FSA plans to revise the
Deposit Insurance Law to enable the introduction of the new account.
TOKYO - The Incubator Bank of Japan, which was earlier this year investigated by police for allegedly obstructing a government audit, filed for bankruptcy proceedings with the Financial Services Agency under the
Deposit Insurance Law on Friday, the agency said.
The council plans to come up with a set of policy recommendations in early September on a proposed revision of the
Deposit Insurance Law, the government officials said.
As a result, there are only two remaining options for the bank -- an additional injection of capital from Tokyo residents' tax payments and a bankruptcy proceeding under the
Deposit Insurance Law, according to the sources.
