All of the nation's financial institutions are in good health following the introduction of the "payoff" system cap on time-deposit guarantees at banks, Financial Services Minister Hakuo Yanagisawa said Monday.
Starting Monday, the government only guarantees 10 million yen worth of every time deposit endangered by a bank failure. The government is set to impose the same refund limit on ordinary and checking-account deposits a year from now.
The plan to end the blanket guarantees has raised concern that depositors will make a run on the banks, forcing weaker institutions to collapse.
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