• 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 2020 (ended March 31, 2021) overall, operating income amounted to ¥227 billion ($2,052 million), down ¥39 billion ($354 million) or 14.7%, year on year because of a decrease in interest and dividends on securities from decreases in interest on securities, dividends from investment trusts and gain on cancellation of contracts. Meanwhile, operating expenses came to ¥187 billion ($1,692 million), down ¥26 billion ($239 million) or 12.4%, year on year due to a decrease in interest on payables under securities lending transactions as a result of lower foreign currency procurement interest.

As a result, ordinary income came to ¥39 billion ($360 million), a decrease of ¥12 billion ($115 million), or 24.2%, year on year. Profit came to ¥29 billion ($267 million), a decrease of ¥8 billion ($75 million), or 22.0%, year on year.


In fiscal 2020, the total amount of funding increased ¥2,947 billion ($26,631 million) year on year, for a total of ¥41,603 billion ($375,859 million). Of this figure, deposits received came to ¥33,787 billion ($305,248 million), an increase of ¥2,579 billion ($23,302 million), which mainly comprised demand deposits from shinkin banks.

After deducting redemptions, debentures at the end of fiscal 2020 came to ¥1,774 billion ($16,028 million), down ¥367 billion ($3,318 million) during the fiscal year, including ¥231 billion ($2,095 million) in debentures issued by the SCB.

Borrowed money amounted to ¥6,041 billion ($54,582 million), a year-on-year increase of ¥735 billion ($6,646 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 2020 increased ¥3,350 billion ($30,272 million), to ¥42,658 billion ($385,387 million).

Mainly due to lower government bond holdings, outstanding invested securities increased ¥1,267 billion ($11,451 million), to ¥17,744 billion ($160,311 million) at fiscal year end.

Loans and bills discounted decreased ¥23 billion ($207 million) to ¥8,451 billion ($76,348 million).

The outstanding amount of short-term money market assets increased ¥2,230 billion ($20,148 million), to ¥16,097 billion ($145,428 million), primarily reflecting Bank of Japan current deposits.


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, 2021, the outstanding amount of loans and bills discounted was ¥8,451 billion ($76,348 million).

Credit Ratings (As of July 31, 2021)

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 ¥110.69 per US$1.00, the prevailing rate as of March 31, 2021.

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