The Liberal Democratic Party plans to submit a bill that would require Japanese financial institutions to compensate depositors for losses from cash card forgeries, according to party lawmakers.
LDP legislators will submit the bill to the Diet in the current session, which ends in June, the lawmakers said Tuesday.
The Japanese Bankers Association has offered to create regulations on securing such compensation by member banks.
But LDP panels on financial issues came up with the bill to impose the requirement on all deposit-handling institutions ranging from ordinary banks to agriculture cooperatives and Japan Post, which runs the postal savings system.
The move comes after a surge in card forgery cases in which burglars stole cash card data, made counterfeit cards and withdrew deposits from bank accounts through automated teller machines.
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