Last year, the shock experienced by the European and American financial markets that stemmed from the subprime loan problem transformed into turmoil and conditions finally worsened so much that the condition began being described as the worst crisis in 100 years. The real economy further weakened and the economies of industrialized nations began to steadily worsen from the middle of the year along with emerging nations suddenly losing their momentum. When I assumed the post of Chairman of JBA, I acknowledged the growing harshness of the economic environment, but the reality has been far worse.
The stagnating overseas economies had a great impact on our nation, which has traditionally grown based on a dependence on overseas demand. These harsh conditions will also continue this year. Only, I believe in the fundamental power of our nation’s economy, which maintained growth for about 6 years after recovering from the bubble bursting. It is important not to become overly pessimistic, but rather because the times are such, to “make steady progress” while maintaining a long-term perspective.
JBA would like to fulfill its role in the banking community by playing a role in organizing the market and the regulatory environment, by facilitating the smooth execution of financial functions and by proactively tackling issues independently and autonomously. JBA will apply this policy to continue proceeding with work on the following important tasks this year.
The first task is to “Enhance the Convenience and Diversity of Financial Services.” In view of the reviewing of regulations concerning the firewall between banking and securities businesses, after improving internal control systems, etc., banks will diversify and improve the efficiency of the procurement and fund management methods of customers. Furthermore, JBA will build electronically recorded monetary claims into a new financial infrastructure to provide financing methods to SMEs, etc. in place of discount on bills. Moreover, the linking of Japan Post Bank Co. to the Zengin System should improve the convenience of remittances and JBA would like to dedicate itself to promoting its smooth operation.
The second task is to “Improve Reliability and Safety of Financial Markets.” JBA would like to provide further support for eradicating remittance solicitation fraud and resolving disputes by using the Mediation Committee to improve the financial infrastructure so that it can be used safely. Furthermore, JBA will proactively participate in regulatory discussions led by international institutions, etc. related to information disclosure, the risk control systems, accounting standards and capital adequacy standards, and will aim to establish a highly reliable market.
The third task is to promote “CSR Activities of Banks as a Public Entity.” As a member of society, JBA will continue to proactively conduct activities concerning environmental issues, such as the Zenginkyo(JBA) Eco-Project, or in the area of financial education, etc.
Additionally, regarding the smoothing of financing for SMEs, JBA will continue pouring all its effort into helping the banking community appropriately exercise its function to be a financial intermediary, including activating emergency guarantee systems.
We face a severe environment, but now is precisely the time that the genuine worth of banks is under question. JBA will contribute to the establishment of financial markets that are vibrant and reliable by returning to the basics of banking, including “being fully conscious of the users’ perspective” and by providing financial services that are diverse and of high quality.
I hope that this year will prove rewarding for everyone.