• Financial Information

Financial Information

The Central Bank of the Shinkin Bank Industry

The SCB raises funds mostly through deposits—received mainly from shinkin banks—as well as by issuing debentures. It invests these funds in securities, the proceeds of which are used to extend loans, and draws on the resulting profits to support the activities of shinkin banks.

Business Overview

Earnings Performance

Looking at the financial results for fiscal 2022(ended March 31, 2023), overall, operating income amounted to ¥340 billion ($2,549 million),up ¥124 billion ($931 million), or 57.5%, year on year, mainly because of an increase in profit from derivatives due to sale of hedged bonds and an increase in dividends on securities.

Meanwhile, operating expenses came to ¥307 billion ($2,300 million), up ¥135 billion($1,018 million) or 79.3%, year on year, due mainly to an increase in interest on payables under securities lending transactions as a result of loss on sale of government and other bonds and Interest rate hike in foreign currencies.

As a result, ordinary income came to ¥33billion ($248 million), a decrease of ¥11 billion($86 million), or 25.8%, year on year. Profit came to ¥24 billion ($185 million), a decrease of ¥9 billion ($69 million), or 27.2%,year on year.


In fiscal 2022, the total amount of funding increased ¥2,336 billion ($17,498 million) year on year, for a total of ¥44,176 billion ($330,910 million).Of this figure, deposits received came to ¥34,703 billion ($259,950 million), an increase of ¥1,538 billion ($11,521 million), which mainly comprised demand deposits from shinkin banks.

After deducting redemptions, debentures at the end of fiscal 2022 came to ¥1,458 billion($10,925 million), down ¥88 billion ($664 million) during the fiscal year, including ¥263 billion($1,970 million) in debentures issued by the SCB.

Borrowed money increased by ¥886 billion($6,641 million) during the fiscal year to ¥8,014billion ($60,033 million), mainly comprising borrowings under funding from markets.

Asset Management

The amount of assets under management in fiscal 2022 increased by ¥2,056 billion ($15,402million) to ¥44,733 billion ($335,082 million).

Mainly due to lower government bond holdings, outstanding invested securities decreased by ¥2,529 billion ($18,943 million) during the fiscal year to ¥13,634 billion ($102,133million) at fiscal year end.

Loans and bills discounted increased by ¥1,756 billion ($13,154 million) during the fiscal year to ¥9,514 billion ($71,271 million) at fiscal year end.

The outstanding amount of short-term money market assets increased by ¥2,718 billion($20,364 million) during the fiscal year to ¥21,039 billion ($157,602 million) at fiscal year end, mainly reflecting Bank of Japan current deposits.


To further diversify its investment portfolio, the SCB also invests in such risk assets as stocks and investment trust funds not subject to interest risk, while optimizing its portfolio in response to shifts in the financing and investment environment.

The SCB also carries out interest rate swaps and other derivative trading, to hedge risks linked to assets under management.

Loans and Bills Discounted

As of March 31, 2023, the outstanding amount of loans and bills discounted was ¥9,514 billion ($71,272 million).

Credit Ratings (As of July 31, 2023)

Moody's S&P R&I JCR
Long-Term Credit Rating A1 A A+ AA

Symbols indicating credit rating are assigned by each rating agency.

Annual Reports / Documents

What Are Shinkin Banks?

Shinkin banks are cooperative financial institutions. Their membership comprises local residents and small and medium-sized enterprises. Shinkin banks’ distinctive characteristics are that they are conveniently located; offer fine-tuned, personalized services; and have a strong relationship of mutual trust with their customers and communities.

Cooperative financial institutions are organizations that operate under the fundamental principle of mutual support.

Shinkin banks limit their lending, in principle, to members. However, their functions are almost the same as those of commercial banks, and they also deal with many people who are not members, accepting deposits, providing exchange services, accepting payments, including those for public utilities, and engaging in over-the-counter sales of public bonds, investment trust funds, and insurance.

Shinkin banks not only provide deposit, lending and exchange services, but also offer a diverse range of services to customers and other members of the local community in such areas as support for management improvement and enterprise renewal, business succession support, business start-up support, and local-area revitalization.

Note: US dollar amounts are given for convenience only, converted at the rate of ¥133.50 per US$1.00, the prevailing rate as of March 31, 2023.

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