1.Scheme of the Savings Insurance System
Under the savings insurance system of Japan, agricultural and fishery cooperatives (hereinafter “AFCs”) across the country pay insurance premiums to the Agricultural and Fishery Co-operative Savings Insurance Corporation (hereinafter “SIC”) and SIC makes a certain amount of insurance payouts to protect depositors in the event of a failure of any AFC.
There is a similar deposit insurance system for general financial institutions, which is administered by the Deposit Insurance Corporation of Japan.
As shown in the figure below, when a depositor saves money in any AFC covered by the savings insurance system, an insurance relationship is established among the depositor, the AFC and SIC based on the Agricultural and Fishery Co-operatives Savings Insurance Act (hereinafter “Savings Insurance Act”).
Savings for payment and settlement purposes: 0.018% of the balance of non-interest bearing ordinary savings and current savings
General savings: 0.014% of the balance of interest-bearing ordinary savings, time savings and installment savings