$130 million dollars not protected in Japan as IBJ bank fails

Some 130 million dollars deposited to the failed Incubator Bank of Japan (IBJ) will not be covered by the state-backed deposit insurance agency, the agency said Sunday.

The IBJ, a private lender for small businesses, filed for bankruptcy Friday, in Japan’s first bank failure in seven years.

It is the first time a cap has been applied to deposit insurance, under which account holders’ money is guaranteed only up to a maximum of 10 million yen (120,000 dollars) per depositor.

The cap was enacted in 2002 after a slew of banks went bankrupt when the economic bubble of the 1990s burst.

The IBJ, which was earlier told to halt its operations by the Financial Services Agency, will resume refunding business on Monday, the state-backed Deposit Insurance Corporation of Japan said Sunday.

Read the rest of the story: Over 100 million dollars unprotected in Japan failed bank.

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