The Finance Agency is heightening alert level as regional banks are increasing "national bond repackaging loan - KOKUSAIRIPA" by holding natonal bond in the form of scheme loan. ..
A scheme to acquire financial securities such as national bond in which regional banks provide loans to special purpose company established by brokerage firms. Although net incomes/losses of financial institutions fluctuate greatly as bond prices such as national bond or interest rates vary greatly, repackaged national bonds are loan receivable, and no disclosures are required in contrast to acquiring national bonds themselves, while regional banks may increase outstanding loan receivables.
According to the Financial System Report announced by BOJ in April, the ratio of packaged loan to national and commercial bonds held by regional banks and credit unions are increasing annually to 5.9 percent at the end of 2024.
The Agency cautioned at a conference with regional banks to exchange opinions in this February, saying "loans to packaged natoinal bonds are on the rising trend after covid-19 disaster." In mid-March, the treasury minister also in charge of finance mentioned "to confirm the attitudes toward risk control and way of thinking about disclosures of regional banks with a large balance outstanding."
Responding to strigent policies by the finance agency, president of Juuroku financial group emphasized "we did not purchase a bit (of repackaged bonds) after January 2024. We did not purchase to the extent that would affect management."
President of Oogaki Kyoritsu Bank also told "we did not do that for the past two years. Those loans are evaluated at market value and risks are examinedd."
President of Aichi financial group said "we have histories in the past, but we did not do new engagement for the past three years."
Nagoya bank said there is no possession of repackaged national bonds. The president told "we have not done anything in a form (loans to national bonds) like that. Regarding national bonds, we simply invest in national bonds."
[Confirm Reality By Reading Your Local Newspaper on 5JUN2025]
A negotiation is known to have started to allow Mizuho Bank to participate in a framework of mutually opening up ATM which has been proceeded by Mitsubishi UFJ Bank and Mitsui Sumitomo Bank. Maintaining ATM requires a large amount of expenses for transporting cash, securities, and maitenance, having been a burden on each bank. Expanded mutual usage would promote integration of adjacent ATM, with banks expecting cost reduced. An issue is whether convenience for depositors will be maintained.
Mitsubishi UFJ Bank and Mitsui Sumitomo Bank started mutual ATM gateway in September 2019. Fees for deposit withdrawals and money transfers at an ATM outside branches were adjusted to the same terms. Meanwhile, Mizuho Bank had been sharing ATM with *Aeon* Bank since 2013, and postponing joining their ATM.
According to related sources, three banks have begun a negotiation on a persons in charge basis, and Mizuho Bank is expected to join the framework. However, the talks are preliminary, and specific extents and schedules to implement remain undecided.
Use of ATM is decreasing due to expanded usage of cashless settlements and online banking through smartphones. The number of ATM nationwide excluding Yuucho Bank has decreased to 84 thousands in September 2024 from 110 thousands in September 2014. The number of ATM withdrawals has significantly dropped to 150 million payments in 2024 from 265 million in 2014.
[Confirm Reality By Reading Your Local Newspaper on 5JUN2025]