Intensifying competition from other sectors and industries
First written in FY2016. 6 of 11 entries say "Worsened", first in FY2020. Latest entry: FY2026-H1.
Tomato Bank moved to the "Worse" side of this theme in 2020, 4 years before the typical company in this theme (2024).
The whole theme swung hardest in 2025: 6 of 12 companies on the "Worse" side.
14 other companies' latest entry also says "Restated".
- FY2026-H1RestatedAnnual report
「During the interim consolidated accounting period from 1 April 2025 to 30 September 2025, Japan’s economy continued to recover moderately, supported by improvements in employment and income conditions and firm inbound demand. However, the outlook remained uncertain due to the prolonged impact of high prices, U.S. trade policy, the slowdown in the Chinese economy and exchange-rate fluctuations.」
While indicating a moderate recovery in the domestic economy, high prices, U.S. trade policy, the slowdown in the Chinese economy and exchange-rate fluctuations continue to be identified as factors contributing to an uncertain outlook. - FY2025WorsenedAnnual report
「Small and medium-sized businesses, which are among the Company’s major customers, are also required to address challenges arising from a rapidly changing business environment, including higher prices and energy costs, a weaker yen, labor shortages and rising wages. There is also concern that trends among large companies, including the effects of changes in U.S. trade policy, may significantly affect small and medium-sized businesses, further increasing the importance of regional financial institutions.」
In addition to the traditional issues of higher prices, a weaker yen and labor shortages, the potential spillover to small and medium-sized businesses from changes in U.S. trade policy and trends among large companies is explicitly identified as an issue for regional financial institutions. - FY2024WorsenedAnnual report
「Many businesses serving as the Company’s main customers, particularly small and medium-sized businesses, face various challenges, including soaring raw-material and energy prices, a weaker yen and labor shortages, while repayments of “zero-zero loans,” interest-free and unsecured loans, are entering full swing. The role of regional financial institutions is therefore becoming increasingly important.」
In addition to the traditional issues of low interest rates, demographic trends and digitalization, soaring raw-material and energy prices, a weaker yen, labor shortages, and the full-scale commencement of repayments of “zero-zero loans” are explicitly identified as issues affecting regional financial institutions. - FY2023WorsenedAnnual report
「The environment surrounding regional financial institutions is changing significantly as a result of social and economic changes, including the prolonged period of low interest rates, the declining birthrate and aging population, population decline, and growing demand for inheritance and business succession, as well as rapid digitalization.」
In addition to low interest rates, demographic trends, demand for inheritance and business succession, and rapid digitalization, worsening customer profitability due to labor shortages and rising raw-material and energy prices is explicitly identified as an issue. - FY2022WorsenedAnnual report
「The environment surrounding regional financial institutions continues to change significantly, as financial services are reshaped by social and economic changes, including the declining birthrate and aging population, population decline, and growing demand for inheritance and business succession, as well as rapid digitalization, while a prolonged period of low interest rates is expected to continue domestically.」
The prolonged period of low interest rates, demographic trends, demand for business succession, and changes in financial services resulting from rapid digitalization are explicitly identified as issues and external-environment factors affecting regional financial institutions. - FY2021WorsenedAnnual report
「The environment surrounding regional financial institutions is expected to remain challenging, with downward pressure on earnings from the prolonged period of ultra-loose monetary policy and the entry of businesses from other industries due to deregulation. In addition, the adverse effects of the COVID-19 pandemic, which has continued for more than 1 year, have become apparent in regional economies, creating an extremely difficult situation.」
In addition to the traditional issues of low interest rates and entry by businesses from other industries, the adverse effects on regional economies of the COVID-19 pandemic, which has continued for more than 1 year, are described as having become apparent. - FY2020WorsenedAnnual report
「The environment surrounding regional financial institutions is expected to remain challenging, with downward pressure on earnings from the prolonged period of ultra-loose monetary policy and the entry of businesses from other industries as digital technology advances. In addition, the spread of COVID-19 has recently deepened the downturn in regional economies, creating an extremely difficult situation.」
In addition to the traditional intensification of competition with businesses in other sectors and industries, the entry of businesses from other industries driven by advances in digital technology and the downturn in regional economies caused by the spread of COVID-19 are explicitly identified. - FY2019RestatedAnnual report
「Japan’s financial system has undergone significant deregulation, and competition with businesses in other sectors and industries is intensifying across a broad range of fields, including various products and services.」
Intensifying competition with businesses in other sectors and industries continues to be identified as an external-environment risk. - FY2018RestatedAnnual report
「Japan’s financial system has undergone significant deregulation, and competition with businesses in other sectors and industries is intensifying across a broad range of fields, including various products and services.」
Intensifying competition with businesses in other sectors and industries continues to be identified as an external-environment risk. - FY2017RestatedAnnual report
「Japan’s financial system has undergone significant deregulation, and competition with businesses in other sectors and industries is intensifying across a broad range of fields, including various products and services.」
Intensifying competition with businesses in other sectors and industries continues to be identified as an external-environment risk. - FY2016First statedAnnual report
「Competition with businesses in other sectors and industries is intensifying across a broad range of fields, including various products and services. If the Company fails to gain a competitive advantage in this environment, its operations, results of operations and financial condition may be adversely affected.」
Against a backdrop of deregulation, competition extending beyond the financial industry is recognized as a risk.