Message from the Governor & CEO
Roles and Mission of Japan Finance Corporation
Japan Finance Corporation is a policy-based financial institution that carries out financing within a scope determined by applicable laws and budgets, which are based on government policy for SMEs and micro/small businesses, agriculture, forestry, and fishery policy, etc., with the aim to complement financing carried out by private financial institutions.
JFC's primary mission is to meet the capital needs, including small sums, of those starting new businesses, those dealing with natural disasters or a change in business environment, and to serve the capital procurement needs of Japan's SMEs and micro/small businesses and those engaged in business in the fields of agriculture, forestry, or fisheries.
Exercise of Safety Net Functions
We have responded to customer needs with a deep sense of our mission as a policy-based financial institution to connect policy with businesses and communities and support them.
Amidst the ongoing impacts of COVID-19, prices are rising due to soaring energy prices and other factors, and the many businesses that support the Japanese economy and local communities are currently confronting a challenging business environment. JFC has made maximum use of COVID-19 related loans including the COVID-19 Hybrid Subordinated Loan Program as well as Safety Net Loans created as countermeasures against rising prices to support the cash flow of businesses. To this end, we have cooperated extensively with each region's private financial institutions. The future outlook remains unclear, but we are stepping up collaboration with private financial institutions, Chambers of Commerce and Industry, Societies of Commerce and Industry, and others, working with all supporting organizations to prop up businesses in order to provide them with effective financial support, as well as to bolster and restructure their financial foundations.
Future Measures
With a strong awareness of its role as a policy-based financial institution, JFC will create frameworks that can respond to all crisis including natural disasters such as the Great East Japan Earthquake, pandemics, and changes in the business environment due to economic circumstances and consistently implement safety net functions in any situation.
Additionally, we will perform our risk-taking functions and continue to focus our efforts on supporting the growth fields, including support for business foundation, start-ups, new businesses, business succession, and new expansion by agriculture, forestry, and fisheries businesses, thereby contributing to the growth and development of Japan's economy.
(Support for business foundation, start-ups and new businesses)
JFC is actively committed to supporting business foundation, start-ups, and new business and facilitates the launch of start-ups, which are driving force behind innovation. Some of these companies have later been listed on the stock exchange, taking on a leading role in the Japanese economy. Support for start-ups is becoming even more important for regional economic revitalization in the post-COVID era, and JFC is collaborating with private financial institutions, venture capital firms, and others to provide financial support while supporting core business by holding business matching and other events.
(Support for business succession)
In Japan, supporting business succession is a critically important issue exacerbated by problems such as the advancing aging of management personnel. To provide support for business succession in fields critical to local regions, we will enhance our information—collecting abilities and identify key needs—acting as a bridge linking local hopes to the next generation. We will also collaborate with the Chamber of Commerce and Industry, Societies of Commerce and Industry, and relevant organizations in each region to offer effective consulting including business matching.
(Support for new expansion by agricultural, forestry, and fisheries businesses)
Agriculture, forestry, and fisheries businesses are facing soaring feed and fertilizer prices and are experiencing an unprecedented deteriorating business environment. At the same time, some businesses are actively developing by discovering overseas channels, exporting products, and taking other action. With a long-term perspective of shifting to more sustainable management, JFC collaborates with relevant organizations, including private finance institutions, to support the agricultural, forestry, and fisheries sector.
Closing
To contribute to regional revitalization, JFC will carefully ascertain the circumstances surrounding regions and businesses and adopt a bird's-eye perspective of regions to work toward solving their problems, taking into consideration the changes in business environment caused by COVID-19. While doing so, we will perform our function of connecting the various relevant organizations such as private financial institutions while utilizing our nationwide network of 152 branches to deepen collaboration with local communities.
In order to provide high-quality services regarding policy-based financing, while implementing the above measures, JFC will exercise appropriate risk-taking functions and make every effort to provide expert consulting. To reinforce our policy-based financing functions, we will work to conduct efficient operations, including stepping up digitalization and DX.
In addition, we are promoting sustainability and working to achieve the SDGs through assistance programs for business and by doing our part for communities.
We sincerely hope for your further understanding and support in the future.
July 12, 2023
TANAKA Kazuho
Governor & CEO
