INTERVIEW: DBJ to Deepen Ties with Regional Banks to Boost Risk Capital

Tokyo, Aug. 18 (Jiji Press)–The Development Bank of Japan will strengthen ties with regional lenders to expand the supply of risk capital and revitalize local economies, President and CEO Hirofumi Maki said in an interview. “Japan needs to bolster its overall capacity to provide risk capital,” Maki said. The government-backed bank plans to accept personnel seconded from regional lenders and form investment funds as part of efforts to support regional economies. Under its medium-term business plan through fiscal 2030, DBJ plans to provide 3 trillion yen in risk capital for business restructuring and support for midsize companies. The Financial Services Agency is also easing capital adequacy ratio rules to make it easier for commercial banks to jointly invest in companies with DBJ and other institutions. Maki said he thinks the approach is to have the public and private sectors divide their roles in providing growth capital, adding that DBJ is willing to do its part for that goal. DBJ will issue a new type of corporate bonds this month to raise 5 billion yen. The new bond is intended to raise funds from local governments and other regional entities, with the proceeds used to finance and invest in regional companies working on decarbonization and disaster preparedness. The bond will be issued in the northernmost prefecture of Hokkaido, the Tokai region in central Japan and the Kyushu region in southwestern Japan. Maki said DBJ plans to expand the geographical scope. END [Copyright The Jiji Press, Ltd.]