Shinkin International. January 2016

Transcription

1 International January 2016

2 Group Structure Trading International Underwriting Primary Issuers SHINKIN CENTRAL BANK Total Assets: 33tln (US$276 bln) Offices: Domestic 14, Overseas 5 Employees: 1,205 Members: 267 Banks Listed on: Tokyo Stock Exchange Securities Trading Secondary Market Trading Trading Bank A Bank B Bank C Bank D Bank (..) Lending to SME Sector & individuals Individual Banks Number: 267 : 131 tln Branches: 7,398 Members: 9.27mln Lending to SME Sector & individuals Banks Customers Banks Customers 2

3 Central Bank Central Bank ( SCB ) was established in 1950 to act as a central bank for all the shinkin banks in Japan but also acts as a financial institution in its own right. The bank balances funding supply and demand among the shinkin banks and provides settlement and operational support which may be difficult or inefficient for the shinkin banks to undertake themselves. SCB is one of Japan s largest institutional investors. As of March 2015, the bank had assets of 33.1 trillion (USD 276 billion). SCB s consolidated BIS Capital Adequacy Ratio stands at 36.4% (under domestic standard) and the non-performing loans ratio is 0.73% (as of March 2015). SCB is the 87th largest bank in the world in terms of Total Asset Size (The Banker July 2015 unconsolidated with the banks). SCB Credit Rating as of Sep 2015 : A1 (Moody s), A (S&P), A+ (R&I), AA (JCR) 3

4 Central Bank Business Overview Breakdown of Asset Management and Securities Held (As of March 31, 2015) Securities Short-Term Market Operation Loans and Bills Discounted 23% 18% 1% 58% 3% 15% 1% 21% 1% Government Bonds 59% Municipal Bonds Corporate Bonds Stocks & Investment Trust Funds Foreign Securities Others Total Fund Ranking (As of March 31, 2015) Others USD(bln) Breakdown of Funding (As of March 31, 2015) Fund Raising USD(bln) 100% % Debentures 30 10% Borrowed Money 26 9% Financial Institutions Total Funds 1 Japan Post Bank 1,479 2 The Bank of Tokyo Mitsubishi 1,037 3 Sumitomo Mitsui Banking Corporation Mizuho Bank Sumitomo Mitsui Trust Bank The Norinchukin Bank Mitsubishi UFJ Trust and Banking Corporation Resona Bank Central Bank Mizuho Trust & Banking Co 199 USD/JPY at (Mar 31,2015) 4

5 Banks banks ( credit banks ) are cooperative financial institutions whose members are local residents and small/medium sized companies. banks are close and convenient for their customers and enjoy a strong relationship of mutual trust with the communities they serve. banks (governed by Bank Law) operate in a similar way to commercial banks but in principle restrict lending to members. As of March 2015, there were 267 shinkin banks with a total of 7,398 branches throughout Japan. As of March 2015, the Capital Adequacy Ratio of Banks was 13.1%. Membership stands at around 9.3 million and deposits total 131 trillion (approx. USD 1,098 billion) as of March about 11% of the total deposit market in Japan. 5

6 Bank Distribution The shinkin bank sector, an important partner for local economies, forms a massive network of 267 shinkin banks with 7,398 branches nationwide from Hokkaido in the north to Okinawa in the south. Kyushu (28 banks) Chugoku (21 banks) Hokkaido (23 banks) Hokuriku (17 banks) Tohoku (27 banks) Kanto (49 banks) Okinawa (1 bank) Shikoku (10 banks) Kinki (29 banks) Tokai (39 banks) Tokyo (23 banks) 6

7 Size of the Banks Deposit Outstanding by Banking Segment Deposit Outstanding at Banks (USD bln equivalent as at March 31, 2015) Banking Segment Deposit Outstanding City Banks 2,522 Regional Banks 2, JPY(tln) Banks 1, Agricultural 774 Second-tier Regional 524 Credit Cooperatives Note: Items in parentheses are US doller amounts. Source: SCB Labor Credit 149 Loan Outstanding by Banking Segment Loan Outstanding at Banks Banking Segment (USD bln equivalent as at March 31, 2015) Loan Outstanding City Banks 1,564 Regional Banks 1,481 Banks 541 Second-tier Regional JPY(tln) Agricultural 174 Labor Credit 91 Credit Cooperatives 74 Note: Items in parentjeses are US doller amounts. Sources: SCB USD/JPY at (Mar 31,2015) 7

8 International International Ltd. (a wholly owned subsidiary of Central Bank) was established in London in 1990 as an overseas base for securities business. The main goals of the company are to arrange and place Private EMTN draw-downs, to trade Secondary Eurobonds and to provide broad investment opportunities. These activities are driven by the combined requirements of Central Bank Individual banks among the extensive shinkin network (approximately 80% of shinkin banks have bought EMTNs) Other investors in Japan and elsewhere (sourced both through direct marketing and in co-operation with other arrangers) We are regulated in the UK by the Financial Conduct Authority. 8

9 Transaction Execution Record Number of Deals Vanilla New Issues Structured New Issues Secondary Trade Volume of Deals ( bln) Vanilla New Issues Structured New Issues Secondary Trade USD/JPY at (Mar 31,2015) 9

10 Contacts Head of Capital Markets Takaaki Ando +44 (0) , Associate Director Eisuke Sawaeda +44 (0) , Associate Director Mathieu Mondschein +44 (0) , Manager Alexander Sel +44 (0) , International Ltd. Adderess : 1st Floor, 85 London Wall, London EC2M 7AD Homepage : Telephone : (0) FAX : (0) information@shinkin.co.uk 12