The Diet passed a bill Wednesday to create a new mechanism to safeguard deposits in the event of bank failures after the current blanket deposit protection system is lifted in April 2002.
The amendment to the Deposit Insurance Law, which was adopted at a plenary session of the House of Councilors, is aimed at averting financial tumult caused by the government's removal of full deposit guarantees.
The Upper House also passed a bill to rewrite the Insurance Business Law to create a safety-net system that would protect policyholders in the event of the collapse of a life insurance company.