Development Bank of Japan to boost ties with regional banks
The government-backed bank plans to accept personnel seconded from regional lenders and form investment funds as part of efforts to support regional economies.
The Development Bank of Japan (DBJ) aims to enhance collaboration with regional banks to boost risk capital availability and stimulate local economies, as stated by President and CEO Hirofumi Maki in an interview. Maki emphasized the necessity for Japan to augment its overall capacity in providing risk capital. To achieve this, the government-backed bank intends to enlist personnel from regional lenders and establish investment funds, as part of its strategy to bolster regional economies.
Under its medium-term business plan until fiscal 2030, DBJ plans to supply ¥3 trillion in risk capital to assist with business restructuring and provide support for midsize companies. The Financial Services Agency has also relaxed capital adequacy ratio rules, making it simpler for commercial banks to collaborate in investing in companies alongside DBJ and other institutions.
Maki expressed optimism about the plan, asserting that the public and private sectors should divide their roles in providing growth capital. DBJ is prepared to fulfill its role in this objective. Additionally, the bank will launch a new type of corporate bond this month to raise ¥5 billion. This bond will primarily attract funds from local governments and other regional entities, with the funds allocated for financing and investing in regional companies engaged in decarbonization and disaster preparedness.
The issuance of the bond is scheduled in Hokkaido, the central Tokai region, and Kyushu. Maki hinted at the potential expansion of DBJ's geographical coverage.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
