New Appearance of Shoko Chukin Bank

Shoko Chukin Bank Management Reform Plan (Medium-term Management Plan)

As a plan to implement the "Shoko Chukin Bank Management Reform Plan", which was submitted to the competent ministry on May 22, 2018, Shoko Chukin Bank formulated and publicly announced the "Shoko Chukin Bank Management Reform Plan" on October 18 of the same year.

Along with this plan, Shoko Chukin Bank is developing the "Comprehensive financial services business to support management", providing improved value to SMEs and small and medium enterprises associations from a truly long-term, customer-oriented perspective.

Measures and Support regarding Management Issues Faced by SMEs

For SMEs with low productivity who are in need of management reform, business revitalization, and business succession as well as SMEs which are unskillfully advancing high-risk ventures, based on the challenges faced by the customers, we cooperate and collaborate with regional financial institutions to provide solutions to help our customers solve their problems while focusing on the following areas:

Initiatives in four areas of focus

Shoko Chukin Bank has positioned its business prospects evaluation as a starting point for its comprehensive financial services business to support management. In order to deepen the relationship of mutual trust with customers, understand the businesses and grasp the potential for future growth, we conduct interviews based on the situation and understand sales channels, and utilize the systematically accumulated information to make judgments when determining credit limits or providing solutions.

Business Prospects Evaluation

Via business prospects evaluations, we precisely comprehend customers' challenges, and based on their needs, refinance leading to drastic solutions, and improve financial CF through temporary overdrafts according to working capital requests and long-term bullet repayment financing, as well as deal with core business support leading to the improvement of business CF through business matching.

Structure to Facilitate the Business Model

Establishing a Sustainable Financing Process

  • Supply channel reconstruction based on changes in customer needs.
  • Securing the necessary procurement by using the three pillars of recruitment bonds, corporate deposits, and retail deposits.
  • Recruitment bonds declined from 4.5 trillion yen to 3.5 trillion yen.
  • Due to corporate deposits accumulation, the procurement balance for FY 2021 is secured at 9 trillion yen.

Streamlining Management

  • While maintaining nationwide networks, we plan to redistribute resources to areas of focus and optimize costs.
  • In order to streamline operations and management, thoroughly and quickly, we established a full-time cross-sectional team.

Condition Maintenance

  • Towards an organization where compliance is the highest priority.

KPI Items

Items Contents FY 2019 FY 2020 FY 2021
Business Prospects Evaluation Number of clients sharing the bank's business model 65,112 - -
Number of clients who has knowledge of the Bank's normal working capital through business prospects evaluation 61,913 - -
Number of challenges and needs shared with customers 89,426 106,532 -
Number of local benchmark initiatives 33,790 39,692 -
Unsecured loan ratio based on "Guidelines for Management Guarantee" 41.2% 84.3% -
Solutions Provision (Core Business Support) Number of Business succession support projects 308 193 -
Number of M&A support projects 20 21 -
Number of Business matching support projects 615 607 -
Number of overseas creditors 1,090 1,041 -
Number of cases in which overseas expansion needs are identified 2,748 2,010 -
Number of meetings held by Association Secretary General 160 35 -
lSolutions Provision (Finance Support) Zone A Number of initiatives 16,474 13,725 4,000
Initiative funding 1,477.9 billion yen 1,303.6 billion yen 400.0 billion yen
Loan balance 907.4 billion yen 975.8 billion yen 1,600.0 billion yen
Zone B Planning support 1,185 1,651 2,150
Refinance 1,213 1,541 1,400
Number/ratio of Rank ups 544 / 13.5% 418 / 7.7% -
Management index improvement status 2,575 / 76.0% 2,354 / 68.4% -
Loan balance 938.4 billion yen 1,029.7 billion yen 960.0 billion yen
Zone C Number of initiatives 568 493 750
Initiative funding 98.5 billion yen 134.3 billion yen 75.0 billion yen
Loan balance 166.8 billion yen(*)
  • *Include Foreign currency lending ¥18.8billion
264.0 billion yen (*)
  • *Include Foreign currency lending ¥24.4billion
350.0 billion yen
Zone D Number of initiatives 1,048 742 800
Initiative funding 37.9 billion yen 33.8 billion yen 40.0 billion yen
Loan balance 58.5 billion yen 61.5 billion yen 200.0 billion yen
System / Human resources Number of visits to the bank (Management Solutions Division) 5,292 3,614 -
Percentage of obtaining external qualifications for Business Prospects Evaluation 75.1% 90.2% 80.0%
Percentage of obtaining external qualifications for Business successions 71.1% 84.8% 80.0%
Number of employees obtaining internal qualifications (Solutions) 134 146 130
Number of employees obtaining internal qualifications (Management Improvement) 102 117 80
Cooperation/collaboration with regional financial institutions Number of visits to regional financial institutions 1,458 1,001 -
Number of idea exchange meetings with industry associations 7 3 -
Number of instances of cooperation and collaborations (Solutions Provision) 583 438 -
Number of cooperative loans 2,160 1,549 -
Income/expense situation OHR 72% 69% Approx. 60%
Operating income 20.5 billion yen 7.6 billion yen Approx. 25.0 billion yen
Outcome (CF improvements) Number of business CF improvements 502 980 -
Number of financial CF improvements 7,825 8,812 -
Outcome (Reduced credit costs) Below fear of bankruptcy ⇒ Above attention required level ▲5.3 billion yen ▲1.3 billion yen -
Clients at Attention required level ⇒ Regular clients ▲2.9 billion yen ▲1.5 billion yen -