We Focus on Future Growth.
Shoko Chukin Bank was born during the financial crisis in the early Showa era.
Since then, no matter what era or generation,
we have acted on the mission of "supporting the sustainable growth of SMEs",
always looking towards the future of our customers and the Japanese economy.
Founded amidst a financial crisis.
Due to the repeated crises during the early Showa period, small banks that played crucial role in financing SMEs collapsed. Many SMEs were in a critical condition.
Amidst such a situation, Shoko Chukin Bank was established. Since the establishment of Shoko Chukin Bank, we have provided long-term and unsecured loans, which are difficult for ordinary banks. In response to the public expectations, we demonstrated the financial functionality to save SMEs from distress.
- "Shoko Chukin Bank Limited Act" enforced
- Commenced business at the headquarter (in The Industrial Bank of Japan Ltd. Head office) and established Sapporo and 6 other branches
- Issued the first Shoko Bonds (Interest Rate Bonds)
- Issued the first Discount Shoko Bonds
- Transferred the headquarters to Kyobashi, Kyobashi-ku, Tokyo (from the office in The Industrial Bank of Japan Ltd. Head office)
- The headquarter suffered damages due to air raids
Support for SMEs starting from zero.
At the end of the war, small and medium enterprises grew, increasing domestic production capacity and creating jobs, which was especially important for Japan's revival. Shoko Chukin Bank made efforts to continue financing despite fundraising hardships due to budgetary austerity regulations.
The strong desire to support the Japanese foundation of SMEs, which were starting from zero, became a driving force for Shoko Chukin Bank.
- Issued first post-war Interest-bearing Shoko Bonds
- Started business with association members because of banking laws reform
- Completed establishing branches in all prefectures of Japan
Supporting high economic growth
Economic growth exceeded that of the previous year by 10%. This development created the background for the modernization of small and medium enterprises that played a major role in the domestic economy.
Shoko Chukin Bank's capital investments strongly supported the technological innovations from the financial side. By leading the implementation of internationally competitive products and productivity, Shoko Chukin Bank supported the development of the Japanese economy as other countries look on with wonder.
- First post-war interest rate reduction
- Completed a new headquarter at 6-5-1, Yaesu, Chuo-ku, Tokyo, Japan
- Commenced foreign exchange business
- Official participated in the Bank of Japan Exchange Payment System
- Loan balance exceeds 1 trillion yen
- Full implementation of Online inter Headquarter-Branch Exchange
- Debt issuance balance exceeds 1 trillion yen
Responding to diversification of companies
Standards of living improved along with advances in product sophistication and high added value. The SMEs began to diversify and walk their own path. Shoko Chukin Bank anticipated this change and strove to expand various financial functions such as expanding their scope of lending and accounts, responding to needs diversified for each company.
In order to provide funding, which could be said to be the blood of SMEs, Shoko Chukin Bank was acting with a focus on the future.
- We planned to promote groups managed by young business partners such as youth associations
- Loan balance exceeds 5 trillion yen
- Opened a representative office in London (first overseas location)
- Established the National Youth Association of Shoko Chukin Bank (the first "National Exchange Convention" held in October of the same year)
Roles played during the lost 20 years.
The economic bubble burst and disaster followed. It was a very tough time for SMEs without ample funding.
Amidst such circumstances, Shoko Chukin Bank continued to support SMEs in order to fulfill its mission of "supporting the continuous growth of SMEs".
- Opened a representative office in Hong Kong
- Founded Malaysia Chukin Association (the first overseas Chukin Association)
- Established "Special SME Consulting Service" in each branch.
- Collapse of Hokkaido Takushoku Bank
The words of the person in charge at the time:
"After the bankruptcy of the Hokkaido Takushoku Bank, we received consultations regarding prolonged loans. Because the transfer of business to Hokkaido Takushoku Bank was not officially determined, businesses were looking for new funding sources without looking towards real estate collateral, as well as companies that could not avoid postponing construction of new factories just before the collapse of Hokkaido Takushoku Bank; the failure of the region's leading bank caused a great deal of disorder for regional businesses. Support staff from headquarters rushed to each branch within Hokkaido, regretting their examination work and loan decisions when they went to sleep. The final number of cases was about 800, with an amount of money nearly adding up to 80 billion yen. At the time, we were desperate for the work in front of us, but looking back now, it looks like the safety function of the bank was to be able to contribute to the lives of people living in Hokkaido and the economy."
- Started to conclude treaty of business cooperation with regional financial institutions
- Started handling DDS (Debt-debt swaps)
- Opened a representative office in Shanghai
- First issuance of "Asset-backed Loans (ABL)"
- Started handling new 3-year fixed term deposits aimed at individuals (in April 2007, renamed as "My Harvest")
- Moved from a cooperative financial institution to a public company and started as The Shoko Chukin Bank, Ltd.
- The Great East Japan Earthquake occurs
- Establishment of Tohoku Pacific Offshore Earthquake Countermeasures Headquarters (renamed to the East Japan Earthquake Countermeasures Headquarters on May 13, 2011).
The words of the person in charge at the time:
At the time, I was working at the Sendai branch. Among our business partners, there have been many whose presidents have died in the earthquake, those who have been swept away by tsunami, and where the president came in work clothes and long boots for financial consultation. Changes in payment conditions alone exceeded 50 cases per month. We would get non-stop calls from companies whose gas and water supplies had stopped and could not do business, saying "we would like a loan of working capital for the next year". Under the policy of the branch manager at the time, to "quickly allocate and distribute the necessary funds", we quickly gave support to the companies' fund raising. While the staff members themselves were without a lifeline, I think that all of them were of one mind and were absorbed in the work.
- Opened a representative office in Bangkok
- Kumamoto earthquakes occur
- Established Kumamoto Earthquake Disaster Prevention Headquarters
Promoting the Generation's Innovation
Along with major environmental changes, the role of Shoko Chukin Bank also changes. In order to draw out and support individual strengths, Shoko Chukin Bank must reform itself.
For the growth and development for a wide variety of SMEs, Shoko Chukin Bank must reform itself and create new functions.
- Submitted a plan to improve tasks related to the business model
- Reorganized structure at the headquarters
- Introduced Delegated Executive Officers
- Established the Hokkaido Eastern Iburi Earthquake Countermeasures Headquarters
- Established Diversity Promotion Office
And Now, as well, Towards the Future.