A comparative legal study concerning bankruptcy of Financial Institutions and safe harbor by public fund

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When banks become insolvent, under the assist of safety net, the government decides to use public money to save banks through Deposit Insurance. Finally, what’s most important thing for bank insolvents’ procedure is prevention of decreasing bank assets, in order to fulfill those purposes we should adopt side agreement rule as same as in the USA, which has more effective methods than offsets. The governmental organization in Japan should check and investigate the financial group such as Financial groups not to move assets to outside the Insolvency procedure. When banks become insolvent, the government’s organization such as SESC or Deposit Bank Insurance should overview the procedure, not courts solely, reduce the risks that assets should be decreased under the restriction of offsets, and decide the assets under the Fire Wall of Financial Initiations properly. In order to maintain this purposes, the Japanese governments should consider Consumer Protection of Financial Transactions: CPFT in Japan.