Latest news with #YamanashiChuoBank
Japan Times
08-07-2025
- Business
- Japan Times
Rural bank in Japan finds novel way to attract talent with higher pay
A talent shortage in Japan's financial industry is becoming so acute that even the biggest banks are struggling to find experienced people. It's tougher still for regional lenders that can't pay enough to lure market veterans away from Tokyo. One rural bank has come up with a creative way to deal with the problem. Yamanashi Chuo Bank has set up an "investment advisory firm' to get around internal salary limits and attract talent to manage its ¥1.1 trillion ($7.6 billion) securities portfolio, said Yoshiaki Furuya, president of the lender. Japanese banks tend to structure compensation plans in a way that makes it difficult to give outsized pay to specific employees. By establishing an in-house company to avoid such constraints, it shows the lengths that a bank like Yamanashi Chuo is taking to bolster its ranks in a market where expertise is running short. "It's very important to secure good market talent,' Furuya said in an interview at the bank's headquarters in Kofu, about a 90-minute train ride from central Tokyo. "We can raise the level by using an evaluation system different from the bank's.' While the compensation may still be smaller than that of big rivals, it's higher than what the lender would ordinarily pay, Furuya said. The advisory firm, which started operating last year, currently has two employees who are giving advice on how the bank should invest a portion of its securities portfolio. In Japan, even small regional banks put billions of dollars into securities like Japanese government bonds and stocks to manage deposit money not used for lending. Furuya said the importance of its market operation is increasing as a profit driver. Furuya said his bank is planning to let the firm take charge of more of its assets, and its headcount will increase in line with that process as it hires more. He didn't give specific numbers for hiring because it depends on how the business works out. It's also seeking to win investment advisory work from outside, such as other banks and nonfinancial corporations, he added. According to Furuya, the bank could have its markets team sitting in Tokyo instead of Kofu — a scenic basin known for its vineyards and views of Mount Fuji — but that would increase the risk of employees leaving for other firms, given the abundance of job opportunities in the capital. Traditionally made up of lifetime employees, local banks are starting to see a greater need for outside specialists who can navigate volatile markets for assets such as JGBs. After being held near zero for years by the central bank, yields on Japan's government debt have shot up, making it difficult for banks to determine when to start buying the bonds. Furuya said Yamanashi Chuo is cautiously waiting for the right time to purchase long-dated notes, which have been under pressure this year. While its JGB holdings more than doubled in the fiscal year ended in March, it mostly bought shorter tenors such as two-year notes, he said. "Building up a portfolio from a long-term perspective to generate stable revenues while avoiding paper losses — it sounds very simple, but it's a challenge,' he said.
Bloomberg
07-07-2025
- Business
- Bloomberg
Japanese Bank Finds Novel Way to Attract Talent With Higher Pay
A talent shortage in Japan's financial industry is becoming so acute that even the biggest banks are struggling to find experienced people. It's tougher still for regional lenders that can't pay enough to lure market veterans away from Tokyo. One rural bank has come up with a creative way to deal with the problem. Yamanashi Chuo Bank Ltd. has set up an 'investment advisory firm' to get around internal salary limits and attract talent to manage its ¥1.1 trillion ($7.6 billion) securities portfolio, said Yoshiaki Furuya, president of the lender.
Japan Times
31-03-2025
- Business
- Japan Times
Three Japanese banks form alliance to fight population slump
Three banks based in central Japan are teaming up to combat the enduring challenge of a dwindling population that's threatening their long-term viability. The lenders will cooperate in areas such as venture financing in order to draw outside talent and funding into the region, Shizuoka Bank, Hachijuni Bank and Yamanashi Chuo Bank said in a joint statement on Thursday. The alliance will try to boost the population in the region, so as to address issues like labor shortages, according to Shizuoka Bank's president Minoru Yagi at a briefing. The banks are based in three neighboring prefectures in central Japan. Hachijuni is located in Nagano Prefecture, whose snowy mountains make it a winter sport center — it hosted the Olympics in 1998. Shizuoka is a core unit of Shizuoka Financial Group, and the prefecture it's named after is famous for its tea, seafood and the hot springs-filled Izu Peninsula. Yamanashi Prefecture, home of the third lender, is a mountainous area that's a major producer of grapes and wine. The lenders plans to draw on the shared potential of the common region, which includes a "rich natural endowment,' according to their statement. They will keep their independence under the alliance, though "we don't know what will happen in the future,' Yagi said at the briefing. Shares of the three lenders surged early Thursday amid speculation of what they will announce, though the stock pared those gains after reports of the business tie-up. Still, the spotlight is now on the country's regional banks and potential industry consolidation. Just this week, Chiba Bank said it was considering various strategic options including the purchase of shares of Chiba Kogyo Bank. Gunma Bank also said it's considering such options including a merger with a rival. Those alliance plans reflect shrinking populations and sluggish economic growth in many parts of regional Japan. The Bank of Japan ended its decadeslong supereasy monetary policy last year and has raised interest rates three times as global inflationary pressure pushed up the cost of living in the Asian nation. Rising rates benefit banks by increasing lending margins, but regional lenders need to monitor whether tighter credit weighs on local businesses. "The pace of changes in the business environment is accelerating,' said Hideyasu Ban, a Bloomberg Intelligence analyst. "Regional bank managers probably have a sense of urgency now, feeling pressured to build broader cooperative relationships with other lenders.'
