The Government already has a Resolution and Collection Bank, which can absorb failed institutions, but its activities are not comprehensive enough to deal fully with bankrupt banks.

After that, any bad debt still left will be transferred to the Resolution and Collection Bank, and the bridge bank will be dissolved.

He added that the agency preferred to sell all of a failed bank to a buyer, with as little financial assistance as possible, rather than separating failed loans into a so-called collections bank.

The Miyazawa panel's proposals also include expanding the role of the Resolution and Collection Bank, which is now responsible for disposing of failed credit cooperatives, to include similar responsibilities for failed banks.

Stefanko is among 43 fine-art photographers invited to donate a print to "FOCUS: an auction of the finest photography to benefit City Harvest...." The fund-raiser in 2008, supported City Harvest, a food collection bank in New York City.

Then it will transfer the bad loans to the Resolution and Collection Bank, another entity set up to collect bad loans, and transfer the good loans to the bridge bank, which then may extend loans to those borrowers as a bridge until they find a new banker.