Changes in the Operating Environment Driven by Population Decline, a Falling Birthrate and an Aging Population, Corporate Overseas Expansion, and Negative Interest Rates
First written in FY2017. 4 of 5 entries say "Worsened", first in FY2018. Latest entry: FY2025.
The Shimizu Bank moved to the "Worse" side of this theme in 2018, 2 years before the typical company in this theme (2020).
The whole theme swung hardest in 2020: 12 of 21 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「The environment surrounding financial institutions is facing various changes, including the Bank of Japan's interest rate hikes and companies' substantial wage increases. In addition, the outlook remains uncertain due to the continued rise in prices, overseas trade policies, and developments in the Middle East.」
In addition to structural risks arising from demographic trends and the financial environment, the company identified uncertainty about the outlook stemming from interest rate hikes, rising prices, overseas trade policies, and developments in the Middle East. - FY2022WorsenedAnnual report
「The financial and economic environment had already been challenging due to factors including population decline, the advancing decline in the birthrate and aging of the population, and the prolonged negative interest rate policy. In addition, volatility and uncertainty have increased due to the spread of COVID-19 and rising geopolitical risks, including the situation in Ukraine.」
In addition to the structural challenges arising from demographic trends and negative interest rates, the company identified increased volatility and uncertainty due to infectious diseases and geopolitical risks, including the situation in Ukraine. - FY2020WorsenedAnnual report
「Uncertainty remains due to factors including a shrinking customer base resulting from population decline and the advancing decline in the birthrate and aging of the population, diversification of financial services resulting from the progress of digitalisation, and the prolonged negative interest rate policy.」
In addition to the previously identified population decline, declining birthrate and aging population, and negative interest rates, the shrinking customer base and diversification of financial services through digitalisation have been explicitly identified. - FY2018WorsenedAnnual report
「As the social structure and financial environment change due to factors including population decline, the advancing decline in the birthrate and aging of the population, the continuation of the negative interest rate policy, and changes in financial services resulting from advances in IT technology, the roles required of financial institutions are also becoming more diverse and sophisticated, and the environment is expected to become increasingly challenging.」
In addition to the previously identified demographic trends and negative interest rates, changes in financial services resulting from advances in IT technology have been added as an environmental change, and the company continues to explain that conditions are becoming more challenging. - FY2017First statedAnnual report
「However, as the social structure and financial environment change due to factors including population decline, the advancing decline in the birthrate and aging of the population, companies' overseas expansion, and the continuation of the negative interest rate policy, the roles required of financial institutions are also becoming more diverse and sophisticated, and the environment is expected to become increasingly challenging.」
Demographic trends, overseas expansion by client companies, and the negative interest rate policy are identified as risk factors arising from changes in the social structure and financial environment surrounding regional financial institutions.