• Kyodo News


The failed Incubator Bank of Japan has received applications for refunds totaling ¥45.3 billion from depositors seeking to close their accounts in the 10-day period since the bank resumed operations on Sept. 13, the Deposit Insurance Corp. of Japan said Friday.

As the bank held combined deposits of ¥582 billion when it failed on Sept. 10, the amount is equivalent to 7.8 percent of the total, according to the DIC, which has been acting as the failed bank’s government-appointed administrator.

During the 10-day period through Wednesday, the bank received a total of 12,884 applications from depositors to close accounts by mail or over the counter at 41 of its 101 branches, the DIC said.

The cumulative number of depositors who had visited the branches by 5 p.m. Friday since the bank entered into bankruptcy stood at 7,623.

The number of depositors who visited the branches on Sept. 13 to withdraw or inquire about their funds exceeded 2,000, but the daily average of depositors who went to the branches in recent days has dropped to roughly 650, it said.

Depositors appear to “have gotten their nerve back,” a DIC official said, calling attention to the fact that both the daily total of refunds and the number of people applying for refunds have been following a downward path.

In a related development, the bank said it will restart operations at the remaining 60 branches Monday.

The Financial Services Agency said Sept. 10 that the government had decided to invoke the deposit refund limit system for the bank’s deposits under the Deposit Insurance Law.

The system guarantees deposits of up to ¥10 million in principal plus interest earned per depositor, while funds above the limit will not be fully refunded in light of the bank’s financial condition, which is currently being scrutinized by the DIC.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.