The Ministry of Finance is responsible for maintaining financial stability through effective resolution of failed financial institutions and prompt financial crisis response, in light of the missions such as ensuring the fiscal soundness and maintaining the confidence in the currency system.
For Reference
Ensuring the Stability of Financial System
The Minister of Finance is a member of Financial Crisis Response Council chaired by the Prime Minister.
Depositor Protection
The deposit insurance system aims to protect depositors and to ensure the settlement of funds, if financial institutions should go bankrupt, thereby contributing to maintaining financial stability.
Insurance Policyholders Protection
The Policyholders Protection System aims to protect insurance policyholders, if insurance companies should go bankrupt, thereby maintaining credibility in insurance businesses. The policyholder protection corporations are established separately for life and non-life insurance policyholders.
- The Safety Net for Life Insurance Sector in Japan (Financial Services Agency – website (Available in Japanese))
- Life Insurance Policyholders Protection Corporation of Japan – website (Available in Japanese)
- Non-life Insurance Policy-holders Protection Corporation of Japan – website (Available in Japanese)
Investors Protection
Securities firms strictly observe the separate management system which is a system whereby they manage the assets entrusted by customers separately from their own property to preserve the customer assets. Regardless, preparing for the unlikely event that securities firms cannot smoothly return customer assets for some reason, the investor protection system aims to ensure the protection of investors through compensation by the Japan Investor Protection Fund, thereby maintaining the credibility of securities transactions.