Deposit Insurance Corporation of Japan (DIC)

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This entry sits under financial-regulators INDEX. Read it against Non-life Insurance Policyholders Protection Corporation of Japan and Life Insurance Policyholders Protection Corporation for parallel safety-net peers, and against Financial Services Agency (FSA) / Bank of Japan (BoJ) for the broader system / regulatory boundary.

TL;DR

Japan’s sole special corporation responsible for deposit insurance and failure resolution. Established under the 1971-07 Deposit Insurance Act. It single-handedly covers insurance payout (pay-off) + financial assistance + bridge bank + purchase of specified hard-to-recover claims + management and asset purchase of failed financial institutions. Its funders are a tripartite contribution by the government + the Bank of Japan + private financial institutions (each contributing the equivalent of 1/3 ). The chairman is appointed by consultation among the Minister of Finance, the Commissioner of the FSA, and the Governor of the Bank of Japan. Through public-fund injections and temporary nationalization for cases such as 2003 Resona HD and 2003 Ashikaga Bank, it functioned in effect as the last line of defense of the financial safety net during the banking crises of the Heisei era.

1. Legal basis / establishment

Official name: 預金保険機構 (Deposit Insurance Corporation) English name: Deposit Insurance Corporation of Japan (DIC) Legal basis: Deposit Insurance Act (昭和 46 年 Act 第 34 号) Established: 1971-07-01 Headquarters: Yurakucho 1-12-1 , Chiyoda-ku, Tokyo Business type: Authorized corporation (analogous to a special corporation) Supervising authorities: FSA / Ministry of Finance / Bank of Japan (trinity governance)

Contribution structure

Government                    ── 1/3  equivalent ── Deposit Insurance Corporation
Bank of Japan                 ── 1/3  equivalent ──
Private financial institutions ── 1/3  equivalent ── (megabanks, regional banks, shinkin, shinkumi, etc.)

Key chronology

Sources: ^[預金保険機構 公式サイト: https://www.dic.go.jp/; 金融庁「預金保険制度」: https://www.fsa.go.jp/policy/payoff/; e-Gov 預金保険法: https://laws.e-gov.go.jp/law/346AC0000000034.]

2. Business areas

Sources: ^[預金保険機構 公式サイト: https://www.dic.go.jp/; 金融庁「預金保険制度」: https://www.fsa.go.jp/policy/payoff/; e-Gov 預金保険法: https://laws.e-gov.go.jp/law/346AC0000000034.]

Ecosystem of principal institutions

                 Deposit Insurance Corporation (DIC)
                       │
            ┌──────────┼──────────┐
            │          │          │
        RCC   Special crisis-management bank  Bridge bank
   (Resolution and Collection Corp.)  (temporary-nationalization receiver)  (interim succeeding bank)
            │
    NPL purchase / collection

2003 Resona rescue (largest-class public-fund injection)

• Resona HD was on the verge of falling below the 4% domestic capital-adequacy standard
• Invocation of the measure under Article 102 , paragraph 1 第 1 号 of the Deposit Insurance Act (capital injection)
• Public-fund injection of approximately 1.96 兆円 → de facto nationalization
• Public funds fully repaid by 2015 (including profit, a net gain confirmed for taxpayers)

2003 Ashikaga Bank temporary nationalization

• A regional bank based in Tochigi Prefecture was found to be insolvent
• Invocation of the measure under Article 102 , paragraph 1 第 3 号 of the Deposit Insurance Act (special crisis management)
• **The DIC acquired all shares → management → sale to a Nomura-affiliated receiver in 2008 **
• The only case in Japan to complete the full course of “bank nationalization → full privatization”

2010 Japan Shinko Bank, first invocation of pay-off

• The Shinko Bank, established by former BOJ Policy Board member Takeshi Kimura, failed
• First invocation of pay-off in Japan (the first in the postwar period)
• Depositors above 1,000 万円 took a partial haircut → a real-world application of the principle that “other than settlement deposits, principal + interest up to 1,000 万円”

4. International positioning

• The US FDIC (Federal Deposit Insurance Corporation) was adopted as a reference in the 1970 年s, but unlike the US, its distinctive feature is that it unifies the insurance function + failure-resolution function + non-performing-loan disposal function
• A member of IADI (International Association of Deposit Insurers)
• In times of crisis it functions complementarily with Bank of Japan (BoJ) special lending (lender-of-last-resort function)

Related

• Resolution and Collection Corporation (RCC) · Non-life Insurance Policyholders Protection Corporation of Japan · Life Insurance Policyholders Protection Corporation
• Financial Services Agency (FSA) · Bank of Japan (BoJ)
• Resona HD · Ashikaga Bank
• Japan Post Bank · MUFG Bank · SMBC · Mizuho Bank
• banking index

Sources

• Wikipedia: 預金保険機構 (https://ja.wikipedia.org/wiki/預金保険機構, extracted 2026-05-25)
• Deposit Insurance Corporation official site (https://www.dic.go.jp/, accessed 2026-05-25)
• Deposit Insurance Act (昭和 46 年 Act 第 34 号)
• FSA pages related to the deposit insurance system (https://www.fsa.go.jp/policy/yokin_hoken/, accessed 2026-05-25)
• Bank of Japan, Financial System Report, various issues (publicly available portions)

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