To reduce insurance premiums for financially sound regional banks FSA August 29, 4:04
The Financial Services Agency has compiled guidelines for boosting the management reform of local financial institutions where the business environment is becoming harsh. In order to protect depositors in the event that a financial institution fails, we have included a policy to consider reducing the premiums paid by financial institutions every year if the financial conditions are healthy.
The financial environment of local financial institutions has become increasingly difficult year by year due to population decline and prolonged low interest rates, and in the fiscal year ended March 31, the final profit decreased by 70% of local banks.
In this regard, the Financial Services Agency pointed out in the newly compiled financial administration policy that “it could also have a great adverse effect on the local economy and users,” and incorporated measures to boost management reform. It was.
In order to protect depositors in the event that a financial institution breaks down, the insurance premiums paid by the financial institution to the “Deposit Insurance Organization” each year will be reduced if the finances are sound. And to coordinate with the Bank of Japan.
In addition, when a financial institution invests in another financial institution, it is said that it will review the regulations that must be deducted from equity.
At the same time, the FSA is requesting a radical review of the sales structure of Japan Post Insurance and Japan Post in response to the inappropriate sales issue of Japan Post Insurance.