Financial Services Agency Commissioner Shoji Mori on Monday appeared to contradict LDP policymaker Shizuka Kamei, who one day earlier declared that another postponement of the limited deposit protection may become necessary.
The so-called "payoff" system, originally scheduled to take effect this April, has already been delayed one year by the ruling coalition out of fear that it will entice depositors to shift their savings to larger, more secure banks. That could in turn cause the collapse of the country's many small, weak institutions.
But Mori said the government has no plan to put off the April 2002 introduction of the system, which insures deposits up to 10 million yen. Deposits are now fully guaranteed.