“Japan’s parliament endorsed changes in legislation dealing with failed financial institutions as part of efforts by regulators worldwide to avoid a repeat of the global financial crisis.
The passed amendments, proposed by the Financial Services Agency, allow brokerages and insurers to join banks in being eligible for emergency capital from the state-run deposit insurance agency. The Upper House today also approved so-called bail-in rules that impose losses on investors of failing financial institutions to reduce taxpayers’ burden. The vote was broadcast live through the Internet.
The market meltdown following Lehman Brothers Holdings Inc.’s 2008 collapse prompted authorities around the world to bolster preparedness for financial turmoil. The Basel Committee on Banking Supervision, which sets international banking rules, has proposed that creditors contribute to shoring up firms’ finances before public money is used in the event of a crisis….”
If you enjoy the content at iBankCoin, please follow us on Twitter
