III. Organization, etc., of the Savings Insurance Corporation
1. Establishment
The Corporation is an authorized corporation established in line with the Savings Insurance Act on September 1st, 1973, as the operating entity of the savings insurance system.
2. Capital
Although the Corporation was originally capitalized at 300 million yen, in February 2012 it received an injection of 1.32 billion yen from the government in the Great East Japan Earthquake Business Revitalization Support Account, bringing the capital to 1.62 billion yen at present.
The Corporation’s investors and investment amounts are as follows.
| ○ Government of Japan | 1,395 million yen |
| ○ Bank of Japan | 75 million yen |
| ○ Norinchukin Bank | 75 million yen |
| ○ Credit federations of agricultural cooperatives, etc. | 67.5 million yen |
| ○ Credit federations of fishery cooperatives, etc. | 7.5 million yen |
3. Policy reserves
In its settlement of accounts at the end of every fiscal year, the Corporation transfers the whole amount remaining after subtracting financial assistance costs, general administrative costs and other expenditure from insurance premiums, asset investment revenues and other earnings into policy reserves. This is then accumulated as funds necessary for insurance payouts, other payments, and financial assistance.
4. Borrowings and government guarantees
The Corporation may borrow up to a maximum of 200 billion yen from the Bank of Japan or the Norinchukin Bank, etc., in addition to borrowings related to its operations in response to financial crisis. These borrowings may be subject to government guarantees within a range (budget) approved by a Diet resolution.
5. Policy Board
A “Policy Board” has been established as a decision-making body on important matters related to the running of the Corporation. It has a maximum of 7 members, in addition to the Corporation’s Governor (Chairman) and Deputy Governor. Members are appointed by the Governor from among persons with specialized expertise and experience concerning agriculture, fisheries and finance, with the approval of the competent ministers.
Matters for resolution by Policy Board meetings are prescribed in the Savings Insurance Act, as well as in the Enhancement and Restructuring Act and the Business Revitalizing Corporation Act.
* Matters for resolution prescribed in the Savings Insurance Act
○ Amendments to the Articles of Incorporation
○ Preparation of and amendments to Operational Guidelines
○ Budgets and funding plans
○ Settlement of accounts
○ Decisions on and changes to insurance premium rates
○ Decisions on insurance payouts for Type 1 insured events and applications for extensions to decision deadlines
○ Decisions on suspense payments
○ Decisions on public announcement of insurance payouts and suspense payments (payment timeframe, place, method, etc.)
○ Decisions on financial assistance
○ Decisions on loans of funds to repay settlement debt
○ Decisions on purchases of savings and other receivables
○ Decisions on the estimated proceeds payment rate
○ Decisions on public announcement concerning the purchase of savings and other receivables (timeframe and place of purchase, method of estimated proceeds payment, documents submitted, etc.)
○ Decisions on public announcement concerning settlement payment (payment amounts, timeframe, etc.)
○ Decisions on the content of agreements with designated receivables recovery companies
○ Decisions on amounts of funding to designated receivables recovery companies
○ Decisions on asset purchase prices presented to designated receivables recovery companies, compensation for losses and other conditions concerning the outsourcing of asset purchases
○ Decisions on debt guarantees pertaining to loans of funds to or borrowings of funds by designated receivables recovery companies
○ Decisions on loans of funds to repay savings, etc., or prevent falls in asset value
○ Other matters deemed particularly necessary by the Policy Board
* Matters for resolution prescribed in the Enhancement and Restructuring Act
○ Decisions on monetary grants needed to repay preferred investment
○ Decisions on entering agreements to indemnify losses related to damage collateral agreements
○ Transfers from the General Account to the Special Earthquake Account
* Matters for resolution prescribed in the Business Revitalizing Corporation Act
○ Funding to the Business Revitalizing Corporation
○ Distribution of amounts corresponding to dividends
○ Distribution of residual assets of the Great East Japan Earthquake Business Revitalization Support Account
6. Officers
The Governor and auditor (1) are appointed by the competent ministers, and the Deputy Governor (1) is appointed by the Governor with the approval of the competent ministers.
7. Financial affairs
Budgets and funding plans for each fiscal year are executed and implemented with the approval of the competent ministers, and settled accounts are approved by the competent ministers after the end of the fiscal year.
Any operational surplus is deployed via holdings of government bonds and other securities designated by the competent ministers, deposits in financial institutions, etc.
