- Overview
- Capital Participation under the Act on Special Measures for Strengthening Financial Functions
- Forms of Participation
- Track Record of Capital Participation under the Financial Function Strengthening Act
Overview
Based on an agreement with the Deposit Insurance Corporation of Japan (DICJ), the Resolution and Collection Corporation (RCC) conducts operations entrusted by the DICJ for the purpose of strengthening the financial functions of financial institutions and other entities. RCC has carried out operations related to capital enhancement under the Financial Function Stabilization Law (abolished in October 1998) and the Early Strengthening Law, as well as capital participation under the Act on Special Measures for the Promotion of Organizational Restructuring and the Act on Special Measures for Strengthening Financial Functions. At present, RCC conducts capital participation operations under the Act on Special Measures for Strengthening Financial Functions.
Capital participation is implemented by RCC's subscribing for shares, etc. of financial institutions and other entities
after receiving an application from the relevant financial institution and a notice from the DICJ of its decision to
subscribe for shares, followed by the execution of a contract or the completion of the subscription procedures. The funds necessary for said subscription for shares and suchlike are borrowed from the DICJ. In addition to exercising voting rights pertaining to the shares etc. that are held, RCC exercises its rights accordingly, as a shareholder or investor and disposes of them in connection with the repayment of public funds, subject to the approval of the DICJ.