Financial Information

  • Business Overview
  • Credit Ratings
  • Annual Reports/Documents
  • What Are Shinkin Banks?

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 2019(ended March 31, 2020) overall, operating income amounted to ¥266 billion ($2,451 million), up ¥7 billion ($71 million), or 3.0%, year on year because of an increase in interest and dividends on securities from an increase in dividends from investment trusts, etc. and the realization of unrealized gain. Meanwhile, operating expenses came to ¥213 billion ($1,967 million), up ¥13 billion ($126 million), or 6.8%, year on year due to an increase in expenses on derivative transactions as part of the portfolio rebalancing. As a result, ordinary income came to ¥52 billion ($484 million), a decrease of ¥5 billion ($54 million), or 10.1%, year on year.
Net income totaled ¥37 billion ($348 million), down ¥4 billion ($40 million), or 10.3%, year on year.


In fiscal 2019, the total amount of funding increased ¥1,269 billion ($11,677 million) year on year, for a total of ¥38,656 billion ($355,589 million). Of this figure, deposits received came to ¥31,208 billion ($287,081 million), an increase of ¥241 billion ($2,224 million), which mainly comprised fixed-term deposits from shinkin banks.
After deducting redemptions, debentures at the end of fiscal 2019 came to ¥2,141 billion ($19,699 million), down ¥345 billion ($3,175 million) during the fiscal year, including ¥293 billion ($2,703 million) in debentures issued by the SCB.
Borrowed money amounted to ¥5,306 billion ($48,808 million), a year-on-year increase of ¥1,372 billion ($12,628 million), mainly comprising borrowings under a funding provision to support increased lending by the Bank of Japan.

Asset Management

The amount of assets under management in fiscal 2019 increased ¥926 billion ($8,521 million), or 2.4%, to ¥39,307 billion ($361,582 million).
Mainly due to lower government bond holdings, outstanding invested securities decreased ¥136 billion ($1,253 million), or 0.8%, to ¥16,477 billion ($151,571 million) at fiscal year end.
Loans and bills discounted increased ¥1,428 billion ($13,139 million), or 20.2%, during the year under review to ¥8,474 billion ($77,950 million) as loans to national and government agencies and organizations and business corporations increased.
The outstanding amount of short-term money market assets fell ¥498 billion ($4,586 million), or 3.4% to ¥13,867 billion ($127,562 million), primarily reflecting a decrease in call loans.


To advance its diversified 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, 2020, the outstanding amount of loans and bills discounted was ¥8,474 billion ($77,950 million).


Credit Ratings (As of July 31, 2020)

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 ¥108.71 per US$1.00, the prevailing rate as of March 31, 2020.


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