Tag:law

All the articles with the tag "law".

• Deposit Guarantee Scheme of Japan: DIA & DICJ

  Posted on:October 27, 2024 |  at 10:10 AM

  This article examines Japan's deposit guarantee scheme through an analysis of the Deposit Insurance Act (DIA) of 1971 and the Deposit Insurance Corporation of Japan (DICJ). It explores the DICJ's unique three-pillar structure encompassing deposit insurance, financial institution resolution, and system stability measures, comparing it with the EU's approach under Directive 2014/49/EU. The analysis covers the DICJ's governance framework, financial mechanisms, operational procedures, and historical interventions, including its pivotal role during the 1990s banking crisis and the 2010 Incubator Bank resolution. The article concludes by discussing potential systemic risks, particularly regarding Japan's reliance on debt-based resolution mechanisms and US Dollar exposure.