INTERVIEW: Shinkin Central Bank to Support Smaller Japanese Firms in Asia

Tokyo, Sept. 3 (Jiji Press)–Shinkin Central Bank, the central financial institution for shinkin banks across Japan, will help small and midsize Japanese companies branch out into other Asian markets, President and CEO Hiroshi Sudo said in an interview with Jiji Press. “It’s not easy for individual shinkin banks to support local financing and sales channel expansion” outside of Japan, Sudo said, suggesting that Shinkin Central Bank will meet the needs of clients overseas that cannot be covered by individual shinkin banks alone. Shinkin Central Bank opened a representative office in Ho Chi Minh City, Vietnam, in May as part of efforts to enhance support for Japanese companies operating abroad, its first overseas representative office to be established in about 14 years. “India is good for the next stage,” Sudo said. He indicated that Shinkin Central Bank will strengthen cooperation with financial institutions in the country. Shinkin banks have been struggling with higher interest rates that have left them with unrealized losses on government bond holdings in some cases. Tochigi Shinkin Bank and Wakkanai Shinkin Bank have received capital support from Shinkin Central Bank. “Now is a turning point,” Sudo said, adding, “If shinkin banks can overcome (the current situation), their finances will improve.” Shinkin Central Bank will provide support to struggling shinkin banks to ensure that “regional financing is not cut off,” he said. END [Copyright The Jiji Press, Ltd.]