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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 2023 (ended March 31, 2024), overall, operating income amounted to ¥393 billion ($2,598 million), up ¥52 billion ($349 million), or 15.5%, year on year, mainly because of an increase in dividends on securities.
Meanwhile, operating expenses came to ¥351 billion ($2,319 million), up ¥44 billion ($290 million) or 14.3%, year on year, due mainly to an increase in interest on payables under securities lending transactions as a result of higher foreign currency procurement interest.
As a result, ordinary income came to ¥42 billion ($278 million), an increase of ¥8 billion ($59 million), or 26.9%, year on year. Profit came to ¥30 billion ($204 million), an increase of ¥6 billion ($40 million), or 24.9%, year on year.
Funding
In fiscal 2023, the total amount of funding increased ¥1,067 billion ($7,050 million) year on year, for a total of ¥45,243 billion ($298,895 million).
Of this figure, deposits received came to ¥33,102 billion ($218,682 million), a decrease of ¥1,601 billion ($10,579 million), which mainly comprised demand deposits from shinkin banks.
After deducting redemptions, debentures at the end of fiscal 2023 came to ¥1,302 billion ($8,602 million), down ¥156 billion ($1,033 million) during the fiscal year, including ¥243 billion ($1,607 million) in debentures issued by the SCB.
Borrowed money increased by ¥2,825 billion ($18,663 million) during the fiscal year to ¥10,839 billion ($71,609 million), mainly comprising increased borrowings from the Bank of Japan and funding from markets.
Asset Management
The amount of assets under management in fiscal 2023 increased by ¥1,243 billion ($8,216 million) to ¥45,977 billion ($303,740 million).
Mainly due to higher government bond holdings, outstanding invested securities increased by ¥2,404 billion ($15,885 million) during the fiscal year to ¥16,039 billion ($105,961 million) at fiscal year end.
Loans and bills discounted decreased by ¥654 billion ($4,320 million) during the fiscal year to ¥8,860 billion ($58,537 million) at fiscal year end.
The outstanding amount of short-term money market assets decreased by ¥386 billion ($2,555 million) during the fiscal year to ¥20,653 billion ($136,441 million) at fiscal year end, mainly reflecting call loans despite increase in Bank of Japan current deposits.
Securities
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, 2024, the outstanding amount of loans and bills discounted was ¥8,860 billion ($58,537 million).
Credit Ratings (As of July 31, 2024)
| 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 ¥151.37 per US$1.00, the prevailing rate as of March 31, 2024.