Greetings from President

Eiryu Sanatani
President

　I am Eiryu Sanatani, President of Agricultural and Fishery co-operative Savings Insurance Corporation (hereinafter “SIC”). I would like to express my appreciation for your support.

　SIC was established in September 1973 as an authorized corporation to administer the agricultural and fishery cooperative savings insurance system under the Agricultural and Fishery Co-operative Savings Insurance Act.

　The mission of SIC is to contribute to maintaining a sound financial system in Japan by:
– Paying necessary insurance benefits and purchasing receivables such as savings when agricultural and fishery cooperatives (hereinafter “AFCs”) have suspended repayments of savings; and
– Establishing systems to provide appropriate financial assistance for mergers, to administer troubled AFCs as a designated administrator and to take measures against financial crisis for AFCs facing business difficulty.

　Since the launch of system, SIC has provided financial assistance for failure resolution of 32 AFCs in 22 cases with the total amounting to 109.9 billion yen. While there has been no case of failure resolution of AFCs since 2003, their business environment continues to be serious. It is important for us to establish a reliable system where we fulfill a role as a safety net provider in case of failure of AFCs, protecting depositors and maintaining an orderly financial system.

　Moreover, given the fact we contribute to maintaining a sound financial system by subscribing preferred equity investment of AFCs subject to special treatment in accordance with the Act on Enhancement and restructuring of Credit Business Conducted by the Norinchukin Bank and specified Agricultual and Fishery Cooperatives, etc. and investing in the Corporation for Revitalizing Earthquake-Affected Business in accordance with the Act on Revitalizing Earthquake-Affected Business, in order to financially support the area devastated by the Great East Japan Earthquake in 2011, we will keep making every endeavor to survey an economic condition of the disaster-affected AFCs and revitalizing earthquake-affected Business. Most of preferred equity investments are repaid and we will continuously contribute to support for revitalizing reconstruction of devastated area.

　Furthermore, according to the enforcement of the act to partially amend the Agricultural Cooperatives Act in April 2016, a limited bridge bank (refers to a subsidiary of the Norinchukin Bank of which main purpose is to acquire the whole/part of credit business of AFCs facing business difficulty) newly entitled a saving insurance coverages. In addition, various regulations to protect depositors are additionally arranged. Under these situations, we will reinforce the bankruptcy proceedings in cooperation with institutions concerned.

　Considering the present conditions, SIC is working at steady implementation of medium-term (2016-2018) operation target and the tasks set forth in the business and operation policy of each fiscal year with the aim of serving as a safety net provider for depositor protection and maintenance of a sound financial system.

　Though SIC is not a large organization, all of our staff members fully recognize our roles and wish to put forth every effort to carry out our duties. We will appreciate your continuous guidance and cooperation.