1.Establishment of the Housing Loan
Administration and Corporation
In order to dispose of the non-performing loans of seven former housing loan companies (jusen), the Housing Loan Administration Corporation was established in July 1996, following a Cabinet decision in December 1995, a Cabinet understanding in January 1996, and the enactment of the Jusen Law in June 1996.
| Housing Loan Administration Corporation | |
|---|---|
| Dec.19,1995 |
Cabinet decision issued on primary loss burden ratios(*1) and establishment of Jusen Resolution Corporation |
| Jan.30, 1996 |
Cabinet decision issued on secondary loss resolution(*2), contributions to Financial Stabilization Fund and financing for Jusen Resolution Corporation |
| June. 18,1996 |
Jusen Act passed (promulgated/enforced from Jun 21) |
| July. 26, 1996 |
Housing Loan Administration Corporation established |
| Oct. 1, 1996 |
Assets of seven Jusen corporations transferred |
| May. 17,1997 |
Legal team assembled to pursue civil liability |
| Mar. 30, 1998 |
Revised Jusen Act passed |
| Dec. 25, 1998 |
Merger contract/merger agreement concluded with Resolution and Collection Bank |
-
(＊1)
Primary Loss-Sharing Ratio
Of the claims acquired from the former housing loan companies (jusen), the sharing ratio of the estimated losses on unrecoverable non-performing claims (approximately ¥6.27 trillion) and the estimated deficit (approximately ¥140 billion) was as follows:
- Parent banks (banks and other institutions that had been shareholders of the former housing loan companies): waiver of approximately ¥3.5 trillion
- General lenders: waiver of approximately ¥1.7 trillion
- Cooperative financial institutions: contribution of approximately ¥530 billion
- Government: expenditure of ¥680 billion
-
(＊2)
Secondary Loss Treatment
- If claim recoveries by the Housing Loan Administration Corporation proceed smoothly and generate profits, such results shall be returned accordingly.
- In the unlikely event that losses are incurred, such losses shall be dealt with under the joint responsibility of the government and the private sector, with the government bearing one-half of the burden.
- The burden to be borne by private financial institutions shall be addressed through such measures as the use of investment income from a newly established fund within the Deposit Insurance Corporation of Japan (the Financial Stabilization Contribution Fund), as well as guarantees provided by the DICJ.
2.From the Establishment of Tokyo Kyodo
Bank to Its Reorganization into the
Resolution and Collection Bank
（1）Establishment of Tokyo Kyodo Bank
Following the failure of two credit cooperatives in Tokyo in December 1994, Tokyo Kyodo Bank was established in January 1995 as a bridge bank to stabilize the financial system. In March of the same year, it assumed their business operations.
Furthermore, in March 1996, the bank also acquired the business of the failed Cosmo Credit Cooperative.
（2）Reorganization into the Resolution and Collection Bank
Following the amendment of the Deposit Insurance Act in 1996, Tokyo Kyodo Bank was reorganized into the Resolution and Collection Bank in September of the same year. It became responsible for purchasing and collecting non-performing loans from failed credit cooperatives.
In addition, due to the 1998 amendment to the Deposit Insurance Act, the bank became authorized to undertake asset purchase operations not only for credit cooperatives but for failed financial institutions in general.
|
（1）Tokyo Kyodo Bank |
|
|---|---|
|
Dec. 9, 1994 |
Failure of Tokyo Kyowa Credit Union and Anzen Credit Union as well as measures to stabilize |
|
Jan. 13,1995 |
Tokyo Kyodo Bank established (capital: 21.495 billion yen) |
|
Mar. 25, 1996 |
Business of Cosmo Credit Union wholly transferred to Tokyo Kyodo Bank |
|
June 18, 1996 |
Finance-related bills passed (promulgated/enforced on Jun 21) |
|
（2）Reorganization into the Resolution and Collection Bank |
|
|
Sept. 2, 1996 |
Trade name changed to Resolution and Collection Bank |
|
Sept. 5, 1996 |
Agreement on resolution and collection operations concluded with the DICJ |
|
Mar. 3, 1998 |
New agreement concluded on resolution and collection operations (covering asset purchases from credit unions as well as banks) |
|
Nov. 5, 1998 |
Specified resolution and collection agreement concluded (purchase, administration and disposition of assets in accordance with Article 53 of the Financial Revitalization Act) |
|
Dec. 25, 1998 |
Merger contract/merger agreement concluded with Housing Loan Administration Corporation |
3.Establishment and Development of the
Resolution and Collection Corporation (RCC)
In response to a series of failures of financial institutions and securities companies since November 1997, the Deposit Insurance Act was amended in October 1998. As a result, the Housing Loan Administration Corporation and the Resolution and Collection Bank were merged, with the former as the surviving entity, leading to the establishment of the Resolution and Collection Corporation (RCC) on April 1, 1999.
|
Resolution and Collection Corporation (RCC) |
|
|---|---|
| Apr. 1,1999 | Resolution and Collection Corporation established; Nakabo Kohei appointed president (appointed president of Housing Loan Administration Corporation on Jul 26, 1996), resolution and collection agreement concluded with the DICJ |
| June 1, 1999 | Servicer business license acquired |
| Aug. 2, 1999 | Kioi Akio appointed president |
| Mar. 22, 2000 | Pursuit of banks' mediator liability toward Jusen companies terminated |
| Nov. 29, 2000 | End of pursuit (lawsuits, settlement) of management liability at former Jusen companies announced |
| Apr. 17, 2001 | Compliance Committee established "Agreement on Collection Operations" concluded with Agricultural and Fishery Co-operative Savings Insurance Corporation |
| June 26, 2001 | "Basic Policies for Economic and Fiscal Management and Socioeconomic Structural Reform" ("Large-Boned Policies") approved by Cabinet" |
| June 27, 2001 | Financial Revitalization Act partly revised (Article 53 purchase deadline extended by three years) |
| Aug. 31, 2001 | Authorization received to engage concurrently in trust business; Trust Business Department established |
| Nov. 1, 2001 | Corporate Revitalization Headquarters established |
| Jan. 11, 2002 | Revised Financial Revitalization Act enforced (greater flexibility in purchase pricing, participation in bidding, etc.); Corporate Revitalization Committee established |
| Apr. 10, 2003 | Financial Revitalization Act Article 53 purchase period further extended by one year |
| Feb. 16, 2004 | "RCC Corporate Revitalization Scheme" established |
| Apr. 1, 2004 | Okuno Yoshihiko appointed president |
| Sept. 5, 2005 | Outside Expert Council established |
| Sept. 21, 2006 | Overview/summary of Outside Expert Council deliberations released |
| Mar. 1, 2009 | Ueda Koichi appointed president |
| Jan. 18, 2010 | Grievance Committee established |
|
Oct. 29, 2011 |
Revised Deposit Insurance Act enforced (purchase/collection of specified difficult recovery claims, bridge bank operations) (*3) |
|
June 20, 2012 |
Fujita Shozo appointed president |
|
June 30, 2012 |
The Jusen Account was closed without establishing any new account(*4) |
|
Dec 19, 2012 |
Head office relocated (to Shin-Nisseki Building, 3-4-2, Marunouchi, Chiyoda-ku, Tokyo 100-0005) |
|
Mar. 28, 2014 |
Purchase and consigned administration and recovery of claims against anti-social forces utilizing servicer functions began |
|
Apr. 1, 2014 |
Accreditation Advisory Committee established |
|
Oct. 5, 2015 |
Fujiwara Toichi appointed president |
|
June 11, 2020 |
Honda Morihiro appointed president |
-
(＊3)
Amendment to the Deposit Insurance Act in 2011
Following the amendment of the Deposit Insurance Act in May 2011, RCC's role was expanded to include:
- bridge bank functions in the resolution of failed financial institutions; and
- the purchase and collection of claims against anti-social forces (referred to as "Specified Difficult-to-Collect Claims")
Furthermore, in December 2013, the Financial Services Agency published guidelines on promoting the severance of relationships with anti-social forces. As a result, RCC began providing services--starting in March 2014--utilizing its servicer functions to purchase, manage, and collect claims held by finance companies, insurance companies, and others that are not eligible for purchase as specified claims.
-
(＊4)
Closure of the Jusen Account*1
(Final loss treatment for the former housing loan companies)
Under the Cabinet understanding of January 30, 1996, the final loss treatment for the former housing loan companies (secondary loss treatment) was to be borne equally by the government and the private sector. In June 2012, of the finalized amount of secondary losses in the Jusen Account, approximately ¥1.4017 trillion, the government's share of approximately ¥700.9 billion was processed*2 without creating any new fiscal burden, and the Jusen Account was closed.
-
＊1
Jusen Account: the account for managing claims purchased from the former housing loan companies
-
＊2
Treatment of the government's share: in addition to accumulated profits and recovery proceeds of the Jusen Account, the government's share was covered by transfers of retained earnings from other accounts to the Jusen Account and by grants of investment income from the New Financial Stabilization Foundation, thereby enabling the losses to be processed without creating any new fiscal burden.