Table 3 Chronology of Events

Year	Month	Events	Month	Laws, measures and policies	# of failed institutions for each fiscal year
Bank	Shinkin bank	Credit cooperative
71	Jul.	Deposit insurance corporation established.
86	Apr.	MOF introduces the new standard that the capital ratio of financial institutions should be 4% or higher for domestically operating banks and 6% or higher for internationally operating banks (For shinkin banks and credit cooperatives the ratio was set to be applied from FY1990).
88	Jul.	Basel Accord
91	1
92	Mar. 93	MOF announces that the capital ratio of financial institutions which operate overseas should be 8% or higher.	1
93	1	1
94	Dec.	Resolution of Tokyo Kyowa Credit and Anzen credit cooperatives announced.	4
95	Jun. Jul. Aug.	MOF announced that the estimated outstanding of NPLs of the deposit-taking financial institutions in March 1995 was about ¥40 trillion. Cosmo Credit Cooperative ordered to suspend operations. Kizu Credit Cooperative ordered to suspend operations. Resolution of Hyogo Bank announced.	Dec.	Financial system research council releases final report on measures for the maintenance of financial system stability.	2	2
96	Nov.	Financial system reform (Japanese version of the Big Bang) announced. Hanwa Bank ordered to suspend operations.	Jun.	Three bills including the amended Deposit insurance law were passed (Special treatment of blanket guarantee of deposit insurance introduced until the end of March 2001).	1	1	6
97	Nov.	Sanyo Securities files application for rehabilitation. Resolution of Hokkaido Takusyoku Bank announced. Yamaichi Securities announces suspension of operations.	Jun. Dec.	Government published a detailed plan of Japanese version of the Big Bang. A bill to amend the Deposit insurance law passed (Financial assistance to specified Prompt corrective action (PCA) introduced. Four bills implementing the Japanese Big Bang (Financial reform law, SPC law, Revision of 13 laws to comply with SPC law, and the Obligation netting law) passed.	3	14
98	Jun. Oct. Dec.	Financial supervision agency (FSA) inaugurated. LTCB placed under special public administration. NCB placed under special public administration.	Jun. Dec.	Three ruling parties agree to postpone lifting of special measures concerning the deposit insurance system (end-March 2001 to end-March 2002).	5	25
99	Dec.	Supervision of credit cooperative transferred from local governments to FSA.	10	29
2000	Apr.	The coverage of deposit protection up to ¥10 mil. reintroduced for time deposits (Unlimited protection for demand deposits continues until March 2003.) Minister of Financial services announced the continuation of unlimited protection for demand deposits until March 2005. A bill to amend the deposit insurance law passed (Introduce full protection for payment and settlement deposits from April 2005 (as a permanent measure)).	2	13	41
2001
2002	Apr. Jul. Dec.	The coverage of deposit protection up to ¥10 mil. reintroduced for time deposits (Unlimited protection for demand deposits continues until March 2003.) Minister of Financial services announced the continuation of unlimited protection for demand deposits until March 2005. A bill to amend the deposit insurance law passed (Introduce full protection for payment and settlement deposits from April 2005 (as a permanent measure)).

Note: Prepared by the author using the information published by the Financial services agency, Deposit insurance corporation and Financial Book Consultants Ltd.