Business and Management Plan

JFC has formulated the following Business and Management Policy and Plan for the period from FY2017 on.

Business and Management Plan (FY2017-2019)

JFC has responded steadily and agilely to firmly demonstrate its safety-net functions for assisting the reconstruction from the Great East Japan Earthquake, recovery and restoration from typhoons and other natural disasters, while attentively meeting demands in accordance with economic conditions. Also, JFC is continues to be comprehensively committed to Strategic Fields of Growth, etc., including support for the new development of start-ups, new business, business revitalization, social business, overseas expansion, agriculture, forestry, and fisheries business operators for the future development of the Japanese economy. Furthermore, in order to contribute to regional revitalization, JFC is demonstrating its comprehensive support capabilities by providing further support to individual businesses that sustain regional economies by utilizing its network of 152 branches nationwide, as well as cooperating with relevant organizations, which include private financial institutions, on initiatives such as comprehensive regional strategies that support local government efforts in resolving regional issues.

Also, given the significance of the policy finance function, we are working to perform an appropriate risktaking function, and to provide high-quality services by enhancing our consulting functions and capabilities and demonstrating our policy recommendation abilities, as well as consistently promoting publicity activities. In carrying out our affairs, we will follow the principle of "doing ordinary tasks with excellence" , while steadily and appropriately building on each individual task. In addition, taking a bottom-up approach to management as our motto, we aim to gain an accurate understanding of customer and regional needs, respond empathetically, and become a more familiar and reliable presence. In this the integrated branch office manager will continue endeavoring to fulfill the role of the "cornerstone" of the JFC network. Also, in our organizational management we will utilize information technology in pursuit of efficient and effective management. At the same time, we will work to create a fulfilling workplace through human resource development and promotion of career opportunities for women.

Through the above measures, we plan to work toward maturation as "One Finance Corporation" in advance of the 10th year of our integration, and under that concept, each employee strives with a sense of mission, as a policy-based finance operator, to demonstrate their roles to connect this policy to its various business endeavors. In doing so, JFC is working to achieve the following goals.

Goals of Business Operations

Support for reconstruction from the Great East Japan Earthquake

  • A. Respond sincerely to Earthquake-affected customers seeking advice on financing and repayments, etc.
  • ・Respond smoothly, promptly and carefully through special consultation desks for the Great East Japan Earthquake.
  • ・Provide loans in an appropriate and timely manner through the Great East Japan Earthquake Recovery Special Loan and the Special Earthquake Loan for Agricultural, Forestry and Fishery Business Owners and for Food Business Operators.
  • ・Respond attentively and swiftly to repayment inquiries and issues with overlapping debt.
  • ・Endeavor to make prompt and precisely tailored responses through insurance such as the Great East Japan Earthquake Recovery Emergency Guarantee program.
  • B. Make precisely tailored responses to reconstruction projects implemented in affected areas.
  • C. Appropriately implement Operations to Facilitate Crisis Responses to cope with any crises recognized as "Cases related to the Great East Japan Earthquake."

Respond carefully to the needs for safety net services and provide a stable supply of funds

  • (1) Make precisely tailored responses to the needs of customers for safety net services.
    Safety net financing such as funding support
  • (a) Provide precisely tailored support to SMEs and micro businesses faced with a worsening business environment and working towards business improvement.
  • (b) Provide safety net functions to agriculture, forestry, and fishery business owners who have suffered the effects of natural disasters, infectious livestock diseases, falling prices of farm produce or some other adversity, and those working toward business improvement.
  • (2) Provide sufficient funds to customers in a timely and efficient manner.
  • A. Actively support the funding needs, etc., of customers.
    Swiftly handle the funding needs of customers such as various loans, funding programs and securities.
  • B. Respond quickly to emergencies and conduct operations in a prompt and smooth manner.
    Facilitate precise operations to facilitate crisis responses.
  • (3) Steadily implement the Credit Supplementation System.
  • A. Support for SMEs and micro businesses through the Credit Supplementation System.
  • (a) Respond appropriately to demands for safety net services related to credit guarantees.
  • (b) Respond appropriately to various systemic revisions by collaborating with relevant institutions.
  • B. Strengthen collaboration with Credit Guarantee Corporations, etc.

Supply funds with priority given to Strategic Fields of Growth, etc.

  • (1) In addition, JFC proactively supports Strategic Fields of Growth, etc., including support for the new development of start-ups, new business, business revitalization, social business, overseas expansion, agriculture, forestry, and fisheries business operators.
  • A. Support for business start-ups and new businesses.
  • (a) Contribute to regional innovation and job creation through increased support to business start-ups.
    New development loans (number of companies) (before establishment and within one year after establishment): 24,000
  • (b) Proactively supply funds and support growth of companies engaged in new business activities.
    Number of companies contracted with startup and entrepreneurial support loans: 1,300
  • (c) Strengthen financial services by combining the services of its multi-business units.
  • (d) Cooperation with institutions that support start-ups and new business.
  • (e) Hosting of "High School Student Business Plan Grand Prix".
  • B. Support business revitalization.
  • (a) Strengthen support functions for business revitalization.
    Number of companies contracted with business revitalization loans: 1,200
  • (b) Enhanced collaboration with Revitalization Support Council, etc.
    Number of companies forwarded to Revitalization Support Council, etc.: 100
  • (c) Proactive utilization of financing methods such as DDS and DES.
  • (d) Enhanced revitalization initiatives for multiple linked businesses.
  • (e) Appropriate implementation of two-step loans for business restructuring based on the Industrial Competitiveness Enhancement Act.
  • C. Social Business Support.
  • (a) Proactive response to requests for funds.
    Number of loans to businesses engaged in social business: 7,000
  • (b) Expansion of support services for the resolution of business challenges.
  • (c) Strengthen coordination with organizations supporting social business.
  • D. Support for overseas expansion.
  • (a) Facilitate support for fundraising (yen and foreign currencies) by SMEs engaging in overseas development and steady implementation of the Standby Letter of Credit Program.
    Number of companies contracted with support for overseas expansion: 540
  • (b) Support for the overseas business expansion of micro/small businesses.
    Number of Loans for Overseas Investment and Expansion: 1,100
  • (c) Strengthen financial services by combining the services of its multi-business units.
  • (d) Provide information to customers seeking to expand overseas.
    Number of Seminars on Overseas Business Expansion: At least 100
  • (e) Collaboration with institutions that support overseas investment.
  • E. Support for new expansion by agricultural, forestry, and fisheries businesses.
  • (a) Support business improvement initiatives for corporations and large family businesses while utilizing valuation techniques with an emphasis on profitability.
    Number of borrowers in areas as defined by the Farmers and Farmland Plan: 4,800
  • (b) Support efforts to secure new farmers.
    Number of loans to people entering agricultural management and agricultural management entities hiring new farmers: 1,400
  • (c) Support for agricultural, forestry, and fishery businesses initiatives to improve businesses in the sixth industrial sector. Number of sixth sector of industry borrowers: 1,100
  • (d) Support for agricultural, forestry, and fishery businesses engaging in overseas expansion.
  • (e) Support efforts to promote the use of domestic timber by large-scale wood-related businesses.
  • (f) Support for fishery production enhancement and construction of ships to replace old fishing boats.
  • (g) Support for food businesses engaged in expansion of domestic and foreign demand through increased collaboration with agricultural, forestry, and fishery businesses.
    Number of food business borrowers: 215
  • (h) Provide information such as policy information and results of various surveys.
  • F. Support responses to global environmental issues.
  • (a) Promote initiatives supporting environmental and energy measures by SMEs and micro businesses.
  • (b) Appropriate implementation of two-step loans for specific businesses based on the Low Carbon Investment Promotion Act.
  • G. Contribute to equal educational opportunities.

Enhancement of community-based initiatives by exercising JFC's comprehensive capabilities

  • (1) Contribution to local and regional revitalization by active participation in regional projects from comprehensive regional strategies, etc.
    Contribution to promoting and implementing various measures related to comprehensive regional strategies.
  • (2) Strengthen financial services by combining the services of its multi-business units, and provide useful information that meets customer and regional needs.
  • A. Strongly promote the "Demonstrating Comprehensive Capabilities" in a way which utilizes the management resources of each business unit.
  • (a) Promote efforts to utilize our nationwide network of 152 branches.
  • (b) Collect and provide information about measures in each region and participation in regional projects such as various policies stemming from the comprehensive regional strategy.
  • (c) Promote provision of information and loans consistent with customer and local needs through coordination of multibusiness units.
  • (d) Match customers through cross business unit collaboration.
  • (e) Hold consultancy meetings and seminars attended by customers from multi-business units.
  • B. Further strengthen collaboration between branches.
  • C. Promote optimal financing proposals to customers through mastery of the JFC financing system. Branch managers exhibit leadership by strengthening efforts toward mastery of the financing system.
  • (3) Reinforce collaboration with private financial institutions and relevant organizations, etc.
  • A. Promote cooperative loans, etc. through collaboration with private financial institutions.
  • B. Enhanced collaboration with relevant organizations (Chambers of Commerce and Industry, professional associations, industry).

Improve customer service and demonstrate policy significance

  • (1) Promote various measures such as enhancing the consultation capability to improve services and appropriately perform a risk-taking function.
  • A. Appropriately perform a risk-taking function.
  • B. Provide useful information consistent with customer and local needs and enhance consultation capability.
  • (a) Strengthen management support in combination with financing through financial assessments, income and expenditure simulations, etc.
  • (b) Promote appropriate proposals and advice for customers.
    Promote the provision of customer support tools tailored to the needs of customers.
  • (c) Cooperation with network of outside specialists.
  • C. Promote branch management and various service improvements from the customer's point of view through implementation of customer satisfaction surveys, etc.
  • (2) Promote public relations activities such as through strengthening information dissemination.
  • A. Promote public relations activities to enhance the content of the PR magazine.
  • B. Promote public relations activities with regional media.
  • C. Promote public relations activities through planned proposals.
  • D. Promote public relations activities by utilizing the special characteristics of various media such as the Internet.
  • E. Implement awareness survey.
  • (3) Demonstrate JFC's role in contributing to management and policy recommendations by improving the quality of research at the Research Institute, strengthening external communication capabilities, and enhancing the capacity to share knowledge with external institutions.
  • A. Striving for globally high quality in SME research.
  • (a) Regularly conduct economic conditions research.
  • (b) Conduct thematic surveys and publish research results based on these surveys.
  • B. Improve evaluations of research institutions though the strengthening of external communication capabilities.
  • (a) Edit and publish periodical publications, books, etc.
  • (b) Hold JFC Symposiums.
  • (c) Disseminate research results through lectures, etc. at universities.
  • (d) General academic publication of survey data.
  • C. Improve exchanges with other research institutions.
  • (a) Hold and participate in domestic and international research presentations, information exchange sessions, etc.
  • (b) Conduct collaborative research.
  • (c) Participate in external research groups and research projects.
  • D. Demonstrate JFC's role in contributing to management and policy recommendations.
    Conduct surveys and research that contribute to JFC's management and policy recommendations.
  • (4) Efforts to improve systems and measures through policy recommendations that conform to customer feedback and the needs on-site.
  • A. Collect the views expressed by customers, and reflect them in policy recommendations and measures.
    Allow customer trends and the opinions of SMEs and micro businesses, and agricultural, forestry, and fisheries and food businesses to be reflected in our business management (new establishment and improvement of loan program)
  • B. Understand the challenges for the region, and promote policy recommendations aimed at resolving them.
    Gain a detailed understanding the needs of the region regarding policy-based finance, and allow them to be reflected in business management.

Appropriate management of credit risk

  • A. Implementation of appropriate credit management.
  • B. Appropriate management of credit cost.
  • C. Reinforcement of insurance underwriting risk management system.
  • D. Maintenance of a risk management system for loss compensation transactions.

[Unified index according to credit risk]

Index Objective Calculation Method
Initial default rate (%)
Monitoring indicators (Note 5)
By setting the percentage (Note 1) of defaults within one year of a loan (bankruptcy, delinquency) as the index, we monitor whether examinations are functioning correctly. [Year-end Report]
Number of defaults, etc. in the denominator

Number of loans provided in this year (Note 2,3)

[Monthly Report]
Number of defaults, etc. in the denominator

Number of loans provided in the year (Note 2,3) preceding the reporting month (Note 4)
Upward-downward transition of debtor segment (number, etc.) Monitoring indicators (Note 5) [Agriculture and forestry/SMEs] Promote implementation of policies that contribute to appropriate loan management (including support for management improvement) by setting the upward transition of the debtor segment (upward transition from the previous period), and downward transition (downward transition from the previous period) as indices. Upward transition number:Number of cases that transitioned from below requiring management to attention required or above
Downward transition number:Number of cases that transitioned from attention
required or above to below requiring management [Semiannual Report (final settlement)]
Credit related expense ratio (%) Monitoring indicators (Note 5) By setting credit related expense (Note 6) ratio as the index, promote implementation of policies that contribute to minimization of the financial burden (minimization of allowance for loan losses) through appropriate examinations and credit management.
Credit related expenses

Closing credit balance
[Semiannual Report (final settlement)]
  • (Note 1) The scope of defaults excludes "restructured loans." Micro Business and Individual Unit shares a percentage of loans.
  • (Note 2) Direct loans claims by the Micro Business and Individual Unit (Excluding Managerial Improvement, Environmental Health Improvement Loans, Educational Financing, loans against pension, and loans against signed government bonds.)
  • (Note 3) The SME Unit, in addition to direct loan claims, includes loan claims concerning securitization loans, customers' liabilities for acceptances and guarantees of letters of credit other than the issuance of letters of credit (cooperative), and acquired bonds (with stock acquisition rights) and obtained bonds relating to the securitization of loans.
  • (Note 4) Includes the reporting month.
  • (Note 5) This is a reference index to determine the level of achievement, etc.
  • (Note 6) Credit costs include the total of allowances/reversals for loan loss, provision of reserve for compensation losses/reversal of allowances, written-off of loans, losses on devaluation of stocks and other securities, recoveries of written-off claims, loss on accounts receivables, waived loans, recourse amortization, and other expenses ( related to DES implementation).

Organizational Goals

Enhancing branch office functions

  • A. The integrated branch office manager will faithfully exhibit the role of the "cornerstone" of the JFC network.
  • B. Utilize our nationwide network of 152 branches.
  • C. Appropriately fulfill the role of district unification (Understand how to efficiently and effectively develop a framework for businesses at each branch).
  • D. Constantly strengthen the branch management framework based on a bottom-up approach to management.

Strive to streamline back-office functions and improve operations such as through BPR

  • (1) Basic Policy
  • A. Continue efforts to clarify job authority and responsibilities, reassess the way work is performed and how it can be made more efficient, and increase the transparency and efficiency of decision-making processes, while taking into account examinations of past BPR measures.
  • B. Respond to active improvement proposals from staff, work to rationalize administrative operations and realize efficient business operations.
  • (2) Overall goals
  • A. Implement fair contract and procurement procedures.
  • B. Establish and improve planned stores and staff procurement.
  • C. Promote disposal of underutilized real estate.
  • D. Respond to planned inspections/reviews and active improvement proposals from staff to realize efficient business operations.
  • E. Increase use of paper using thinned wood for business cards, envelopes, and other printed materials.
  • F. Promote efficient and effective business through effective utilization of information technology.
  • G. Improve operations through BPR by the Planning and Administration Unit, etc.
  • Note : Business Process Reengineering (BPR): a management technique aimed at radical reform and more efficient business processes by fundamentally rethinking an enterprise's business activities.
  • (3) Individual goals

[Micro Business and Individual Unit]

  • A. Efforts toward further process integration.
  • B. Handle consolidation of educational loan screening process across all branches (September 2017), and ensure the stable operation of the Educational Loan Center following consolidation.
  • C. Efforts to digitize credit check form.
  • D. Promote work improvement from an on-site perspective.
  • E. Promote location centralization in accordance with the reduction in number of cases managed by the Credit Analysis Sub-Unit.

[Agriculture, Forestry, Fisheries, and Food Business Unit]

  • A. Steadily implement BPR policies from the head office.
  • B. Utilize proposed system to intensify daily employee awareness.

[Small and Medium Enterprise (SME) Unit]

  • A. Steadily implement BPR for Loan Programs.
  • B. Conduct efficient screening operations.
  • C. Steadily implement BPR for Credit Insurance Programs.
  • D. Plan efficient deployment of human resources.

[Planning and Administration Unit]

  • A. Establish expense management framework (ongoing initiative of multi-faceted analysis of expenses).
  • B. Improve human resource development to improve procurement capability.

Develop and promote a concrete basic plan for the next JFC system, steadily promote medium-term IT planning, and efficient and effective systems development and operation

  • (1) Develop and promote a concrete basic plan for the next JFC system
  • A. Establish a project structure that is integrated with headquarters.
  • B. Summarize systemization requirements based on the basic plan.
  • C. Review specific methods for achieving the plan, and being work on design and development.
  • D. Move forward with surveys and research into the latest IT.
  • (2) Steadily implement the medium-term IT plan, which is approaching its final year
  • A. Rebuild the system development for Credit Insurance Programs (completed in FY2017).
  • B. Proactively respond to requests for system development by each business unit.
  • (3) Promote efforts toward smooth and efficient system development and operation
  • A. Establish a cooperative framework with each business unit, etc.
  • B. Greater efficiency in systems development.
  • C. Promote smooth and efficient system operation.
  • D. Strengthen security measures.
  • (4) Cultivate human resources for operational reform/business promotion utilizing information technology
  • A. Improve employee IT literacy and put a support organization in place.
  • B. Use training and human resource exchanges to cultivate a core personnel who can utilize and apply information technology.
  • C. Cultivate personnel with a wide range of IT knowledge and high level of proposal ability.
  • D. Cultivate personnel who can respond to cyber security threats.
  • E. Develop human resources to handle future advancements in IT.
  • (5) Appropriate enforcement of system audits

Human resource development

  • (1) Basic Policy
  • A. Enhance staff training for the realization of high quality customer service and to nurture high-level management capabilities and expertise.
  • B. Appropriately operate and review personnel payroll system.
  • C. Promote effective utilization of human resources.
  • D. Increase expertise.
  • (2) Overall goals
  • A. Consensus and understanding of the basic philosophy, management policy, and business management plan.
    Widening understanding through implementation of study groups where employees can engage in discussion, in addition to various meetings and group training.
  • B. Establish a training system that is consistent for all employees from new personnel to senior management.
    Collaborate to implement a personal development system, and training at all levels in addition to those particular to each business unit.
  • C. Strengthen management capacity.
  • (a) Carry out smooth implementation and content enhancement for human resources academy courses.
  • (b) Quality content for level-specific training (newly appointed senior level position and above).
  • D. Appropriately employ regional personnel.
  • E. Smoothly operate a system that enables flexible working styles.
  • F. Review response to government policies involving work style reforms.
  • G. Establish a new personnel payroll system and evaluation system.
  • (a) Conduct monitoring concerning system operation.
  • (b) Establish a framework for smooth operation of the rehiring system.
  • H. Make appropriate use of personnel transfers between business units.
  • I. Expand scope of activities for area employment through administrative employment training systems, etc.
  • J. Conduct measures to improve expertise.
  • (a) Promote internal promotion and hiring of experienced personnel.
  • (b) Promote training to improve expertise.
  • (c) Promote programs to help individuals obtain SME management consultant and Agricultural, Forestry and Fishery Management Advisor certifications, and effectively utilize those certified.
  • (d) Implement corporate dispatch training.
  • K. Increase awareness of recruitment activities.
  • L. Efficiently execute salary payment work, etc.
  • (3) Target numbers
Employee awareness survey item "Awareness level of basic philosophy and management policy" 100%
Employee awareness survey item "Awareness level of business management plan" 100%
Employee awareness survey item "Management of business objectives (managed properly with sufficient interviewing)" 80%
Employee awareness survey item "Feedback on personnel evaluations" 90%

(Supplement) Details of employee awareness survey items

  • ① Employee awareness survey item "Awareness level of basic philosophy and management policy"
    Target number: positive ratio for all employees
    Actual question: Do you know the details of the JFC basic philosophy and management policy?
  • ② Employee awareness survey item "Awareness level of business management plan"
    Target number: positive ratio for all employees
    Actual question: Do you know the details of the business management plan for your business unit/Planning and Administration Unit, etc.?
  • ③ Employee awareness survey item "Management of business objectives (managed properly with sufficient interviewing)"
    Target number: positive ratio for all employees
    Actual question: Do you think you are properly managed by your supervisor through interim progress management and support?
  • ④ Employee awareness survey item "Feedback on personnel evaluations"
    Target number: positive ratio for all employees
    Actual question: Do you get feedback from your superiors regarding achievement and employee performance evaluation results?
  • (4) Monitoring indicators
  • ・Number of certified SME management consultants
  • ・Number of certified Agricultural, Forestry and Fishery Management Advisors

Promoting Career Development for Women and improving the workplace environment

  • (1) Basic Policy
  • A. Actively appoint female managers.
  • B. Promote Career Development for Female Employees.
  • C. Practice work-life management (WLM).
  • D. Implement activities which contribute to the business and have all employees participate in activities for Promotion of Career Opportunities for Women.
  • E. Strengthen harassment prevention.
  • (2) Overall goals
  • A. Under the initiative to employ more female managers, formulate goals for 2018 and beyond, and nurture candidates for managerial positions through "Project Challenge!" and "Follow up on Project Challenge!!" (FY2016 - 2018).
  • B. Support career development for women through mentoring programs, etc.
  • C. Support expansion of area employment through administrative employment training.
  • D. Motivate and increase capabilities of female employees by active participation of management to provide "Practice opportunities and challenges" to female employees.
  • E. Establish a workplace where each employee is free to fulfill their potential.
  • (a) Carry out support in accordance with the current life stage of employees.
  • (b) Promote a varied working style and increase working time productivity.
  • F. Steadily carry out efforts to further contribute to the business based on activities up to this point in the Promotion of Career Opportunities for Women.
  • G. Strengthen measures to prevent harassment (Same initiative as "6. Establish and strengthen risk management and compliance structures" ).
  • H. Create a workplace that makes an effort to encourage every employee to maintain his or her health.
  • (a) Enhance physical and mental health training.
  • (b) Enforce 2 no-overtime days per week, and encourage taking of paid leave.
  • (c) Introduce a stress check.
  • I. Understand management issues through employee awareness surveys.
  • (3) Target numbers
Ratio of female managers 5% (By April, 2018)
Ratio of female new hires recently graduated from university 30%
Employee awareness survey item "Management support to develop capabilities of female employees (females)" 75%
Rate of enforcement of 2 no-overtime days per week 80%
Rate of taking male childcare leave (paternity leave, childcare participation leave, child-care leave) Total 3 days 100%

(Supplement) Details of employee awareness survey items

  • ③ Employee awareness survey item "Management support to develop capabilities of female employees (females)"
    Target number: positive ratio for all female employees
    Actual question: Do you think managers support the promotion of career development for women through daily guidance?

Establishment and strengthening of risk management and compliance structures

  • (1) Basic Policy
  • A. Carry out appropriate risk management in response to policy requests
  • B. Carry out appropriate monitoring together with establishing and strengthening compliance awareness
  • C. Further strengthen risk management framework
  • (2) Overall goals
  • A. Formulate and ensure implementation of risk management programs and compliance programs, and monitor the implementation status of those programs by the Corporate Governance Committee, etc.
  • B. Take appropriate measures to eliminate antisocial forces.
  • C. Strengthen the compliance awareness of each employee through training and utilization of learning tools.
  • D. Thorough reporting and consultation concerning compliance.
  • E. Review BCP (Note) and master the initial response procedures through practical training from the head office concerning BCP, and strengthen crisis management awareness at the individual level.
  • F. Branch managers should properly fulfill their roles in handling compliance concerns and risk management.
  • Note:The Business Continuity Plan (BCP) enables the continuation or early restoration of core business operations which thereby minimizes economic loss in the event of a natural disaster or some other emergency situation.

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