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Incubator Bank of Japan to go bankrupt

Incubator Bank of Japan to go bankrupt

The private Incubator Bank of Japan (IBJ) has been ordered to halt operations and will file for bankruptcy yesterday, in what would be Japan's first bank failure in seven years, officials said.
Government officials stressed that the bankruptcy would have little impact on the Japanese financial system, however.
The Financial Services Agency has told the bank it cannot do any business for at least three days and must make efforts to protect existing depositors, the FSA said in a statement.
The Nikkei business daily and other Japanese media said the FSA is likely to let the bank go under and will only refund depositors a maximum of 10 million yen (US$120,000).
This would be the first time that a cap on deposit insurance had been used in Japan.
The Tokyo-based bank may report a negative net worth of 180 billion yen, the public broadcaster NHK and Jiji Press reported, without citing sources.
Shozaburo Jimi, the minister in charge of financial services, said in a statement that the IBJ will file for bankruptcy Friday at the Tokyo District Court.
"It's extremely regrettable that the situation occurred. I hope depositors remain cool-headed as up to 10 million yen in deposits will be protected," he said.
It would be the first bankruptcy in Japan's banking sector since 2003. The cap on deposit insurance was enacted in 2002, after a slew of banks went bankrupt following the bursting of the economic bubble in the 1990s.


Updated : 2021-03-09 06:36 GMT+08:00