The state-backed Deposit Insurance Corp. of Japan said Sunday that around ¥11 billion, or about 1.9 percent, of deposits at the failed Incubator Bank of Japan will not be covered by the nation's deposit protection scheme, meaning that the amount may not be fully refunded.
The amount belongs to 3,423, or about 2.7 percent, of depositors with the lender for small businesses, which filed Friday for bankruptcy protection, triggering the deposit protection limit for the first time.
Set up in 2004 with a unique business model of accepting only time deposits, the bank attracted depositors because it offered relatively high interest rates and was covered by the system for failed banks under which ¥10 million in principal plus interest earned are guaranteed per depositor.