In an interview with Jiji Press, Shinkin Central Bank Chairman Sudo Hiroshi (須藤 浩) outlined a policy of supporting small and medium-sized enterprises expanding into Asia and said the bank would strengthen assistance with local funding and market access expansion.
Shinkin Central Bank Chairman Sudo Hiroshi (須藤 浩) outlined a policy of supporting small and medium-sized enterprises expanding into Asia and said the bank would strengthen its framework for supporting local funding and market access expansion. The article points to the difficulty shinkin banks face in individually addressing the challenges of securing funding and developing sales channels overseas.
Shinkin Central Bank is strengthening its support system for companies expanding overseas and opened a representative office in Ho Chi Minh City, Vietnam, in May. The opening was the bank’s first in approximately 14 years and will support such efforts as expanding the sales channels of shinkin banks’ customers. Sudo Hiroshi (須藤 浩) identified India as the next stage and suggested that he intends to deepen cooperation with local financial institutions.
Rising interest rates following interest-rate hikes by the Bank of Japan have left a growing number of shinkin banks with unrealized losses on government bonds, resulting in Tochigi Shinkin Bank and Wakkanai Shinkin Bank receiving capital support from Shinkin Central Bank. Sudo Hiroshi (須藤 浩) said this represented a turning point and that the earnings environment for shinkin banks would improve if they could overcome it. He also said the bank would take every possible measure regarding capital support to ensure that regional financial services do not disappear.
The article is based on information from Jiji Press and states that Shinkin Central Bank plans to strengthen its framework for supporting overseas expansion.