Downward pressure on the domestic economy from high crude oil prices, yen depreciation, and rising prices
First written in FY2023-Q2. 3 of 7 entries say "Restated". Latest entry: FY2026.
The Bank of Iwate moved to the "Worse" side of this theme in 2024, 2 years after the typical company in this theme (2022).
The whole theme swung hardest in 2020: 24 of 35 companies on the "Worse" side.
36 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The business environment surrounding the Bank Group is entering an unprecedented phase, with sustained interest rate increases and intensifying competition for deposits progressing simultaneously. The Group also faces unprecedented uncertainty due to the impact on the operations of regional companies from rising prices, surging energy costs and labor shortages, as well as advances in AI and digital technologies.」
In addition to the existing risks from high prices and surging energy costs, the report adds sustained interest rate increases, competition for deposits, labor shortages, and uncertainty arising from advances in AI and digital technologies. - FY2026-H1WorsenedAnnual report
「Although corporate sentiment showed signs of improvement, companies remained cautious in light of high costs, labor shortages and uncertainty in the external environment.」
The report states that high costs, labor shortages and uncertainty in the external environment are contributing to corporate caution, continuing to indicate the risk of downward pressure on the domestic economy from higher prices and costs. - FY2024WorsenedAnnual report
「The environment surrounding regional financial institutions is characterized by the declining prospects of the traditional deposit- and lending-based business model due to prolonged low interest rates, as well as the need to respond to changes such as entry by companies from other industries and the expansion of online banks. In addition to the globalization of efforts to address climate change, the environment is changing rapidly and becoming difficult to predict due to surging energy and raw material prices resulting from heightened geopolitical risks, the spread of cashless payments, and the development of new technologies including AI.」
In addition to the existing risks from higher prices and raw material costs, the report explicitly identified heightened geopolitical risks as a factor behind surging energy and raw material prices. - FY2024-Q2RestatedAnnual report
「The domestic economy in the first half of fiscal 2023 showed signs of a gradual recovery overall. Private consumption remained weak due to persistently high prices and sluggish real wage growth, and capital investment was broadly flat, but housing increased and exports remained on a positive trend.」
The report continues to describe a situation in which high prices and sluggish real wage growth are contributing to weak personal consumption. At the same time, it also notes a gradual recovery driven by improvements in housing and exports. - FY2023RestatedAnnual report
「In addition to the globalization of efforts to address climate change, the environment is changing rapidly and becoming difficult to predict due to surging prices for food, fuel and materials, the spread of cashless payments, and the development of new technologies including AI.」
While continuing to recognize the risk of downward pressure on the domestic economy from surging raw material prices and other factors, the report takes a broad view of changes in the environment, including climate change, cashless payments and AI. - FY2023-Q3RestatedAnnual report
「In the third quarter of fiscal 2022, economic conditions showed signs of recovery despite the impact of higher resource prices, as efforts progressed to balance control of COVID-19 with economic activity.」
The report states that, while the effects of higher resource prices remained, progress in balancing control of COVID-19 with economic activity led to signs of recovery in the domestic economy. - FY2023-Q2First statedAnnual report
「Although high prices continued, driven in part by persistently high crude oil prices and the trend toward yen depreciation, the number of new positive cases of the virus in Japan began increasing again from mid-July through late August. Conditions continued to pressure corporate earnings and weigh on personal consumption, and the domestic economy remained weak, with a stop-and-start recovery.」
Persistently high crude oil prices, the trend toward yen depreciation and rising prices were identified separately from the existing theme of a deteriorating export environment as domestic economic risks that could pressure corporate earnings and weigh on personal consumption.