INTERVIEW: Iyo Bank to Support Shipbuilding Industry Revival

Matsuyama, Ehime Pref., June 22 (Jiji Press)–Iyo Bank, a regional lender in the western Japan prefecture of Ehime, hopes to help revive Japan’s shipbuilding industry, its incoming president, Takashi Sagayama, has said. The Japanese government has designated the shipbuilding industry as one of 17 priority investment areas, in a bid to encourage private-sector investment through tax incentives and other measures. “We will support optimal investment,” Sagayama, now managing director of the bank, said in a recent interview in the Ehime capital of Matsuyama, where Iyo Bank has its head office. Sagayama, who is set to become president Friday, also revealed the bank’s plans to consider joint loans with other financial institutions for large-scale realignments and other projects in the shipbuilding industry while leveraging its accumulated know-how. In Ehime, shipbuilding firms are concentrated in the city of Imabari and surrounding areas. Demand for funds is increasing in the industry amid its recent shift to large vessels and stepped-up efforts to promote maritime decarbonization. As of the end of March, Iyo Bank’s balance of lending to maritime businesses stood at about 1.6 trillion yen, or about a quarter of its total outstanding loans, reaching the target in its medium-term business plan more than a year ahead of schedule. “Our strength lies in the long-standing relationships we have built with our clients in the maritime sector, which tends to have ups and downs,” Sagayama said. Regarding large-scale projects, Sagayama said Iyo Bank is considering joint financing with industry peers, noting that there are limits to the conventional practice of “one bank finances one shipbuilding project.” On recent moves for business integration among regional banks in the country, Sagayama said, “(In general), there is no regional bank leader who is not aware of or does not consider industry consolidation.” “We need to put in place a growth strategy for the next 10 years and strengthen our business foundation,” he added. END [Copyright The Jiji Press, Ltd.]