Incubator Bank Failure Triggers Deposit Insurance Cap
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Incubator Bank of Japan Ltd. declared bankruptcy today, triggering the government’s 10 million yen ($119,000) government deposit insurance cap for the first time in 40 years.
The collapse of the closely held, small-business lender comes after former chairman and Japan Financial Services adviser Takeshi Kimura was charged in August for impeding a regulatory probe. The Tokyo-based bank has about 3,300 depositors with accounts exceeding 10 million yen, Financial Services Minister Shozaburo Jimi said at a press conference today.