Shiga Bank
Basic Information
- Stock Code
- 8366
- Industry
- Banking
- Category Detail
- Banks
- Prefecture
- Shiga Prefecture
- Establishment Year
- October 1933
- Listing Year
- October 1977
- Official Website
- https://www.shigagin.com/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
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Overview
Shiga Bank is a community-based regional bank founded in 1933, the largest financial institution in Shiga Prefecture with approximately 40% share of local lending, focusing on expanding corporate transactions.
Current Situation
Shiga Bank holds the largest financial market share in Shiga Prefecture in recent years and is engaged in solid management. As of 2023, outstanding loans amount to approximately 3.2675 trillion yen, and deposits to approximately 4.3353 trillion yen, with a stable financial foundation. It has expanded corporate transaction bases to Osaka and Kyoto Prefectures, actively pursuing expansion beyond the region through initiatives such as establishing the Kyoto Strategy Office. It has also started trust services, broadening the scope of financial services offered. The core banking system renewal plan is under reconsideration, but efforts are focused on stable system operations. It has received the Eco-First certification from the Ministry of the Environment and is promoting initiatives for local community and environmental conservation. Major shareholders include major domestic trust banks and insurance companies, providing a strong support base with high creditworthiness. Moving forward, it aims to contribute to the regional economy and strengthen its sales organization to meet the needs of both corporate and individual customers. In the increasingly competitive regional bank industry, it seeks sustainable growth by differentiating itself with community-focused sales and consulting capabilities.
Trivia
Interesting Facts
- Largest financial institution in Shiga Prefecture with approximately 40% lending share
- The 900 million yen embezzlement incident discovered in 1973 was Japan's largest bank embezzlement case at the time
- Corporate strategy offices established in Kyoto and Osaka Prefectures to promote wider area expansion
- Free ATM fee alliances implemented with Kansai Mirai Bank and Ikeda泉州 Bank
- Shiga Bank's mascot character is 'Shiga no Suke', a whooper swan
- Announced abandonment of core system renewal in 2024, postponing large-scale updates
- Historical merger in 1933 made it the only head office bank in Shiga Prefecture
- Active promotion of free mutual ATM access in cooperation with local credit unions and cooperatives
- Diverse consolidated subsidiaries including leasing, agencies, and real estate-related companies
- Opened Bangkok representative office in 2012 as an overseas branch
Hidden Connections
- Establishment of Osaka base closely linked to strategy for expanding transactions with major local companies
- Kyoto Strategy Office enables early response to financial needs in neighboring prefecture
- High expectations from outside financial groups, including major domestic insurance companies as major shareholders
- Free ATM alliances form unique collaboration network among Kansai regional banks
- Historical simultaneous listing on Osaka and Kyoto Stock Exchanges in 1977
- 'Shiga no Suke' character utilized as key asset for strengthening regional branding
- Abandonment of core system renewal symbolizes IT investment challenges for small and medium regional banks in Japan
- Past embezzlement incident serves as origin for strengthened compliance
Future Outlook
Growth Drivers
- Expansion of customer base through strengthened corporate sales bases in the Kinki region
- Capture of personal asset management needs via concurrent trust operations
- Increase in lending demand due to steady local economic trends
- Improved customer services through ATM alliances with regional financial institutions
- Operational efficiency and customer convenience improvements via DX promotion
- Enhanced customer satisfaction through strengthened consulting sales capabilities
- New market development through expansion of environmental and regional support financing
- Securing investment capacity with solid financial base
- Improved service quality through workforce development
- Strengthened responsiveness to diversifying customer needs
- Continuation of role as designated regional financial institution
- Strengthened compliance and legal adherence systems
Strategic Goals
- Increase corporate transaction ratio from current approx. 50% to 70%
- Expand trust business sales to approx. 30 billion yen scale
- Further utilization of Eco-First certification through regional environmental conservation activities
- Achieve over 90% digitalization of customer services via DX strategy execution
- Diversify sales base through expansion of branches in Kinki region
- Develop financial products and services contributing to solving social issues
- Improve employee satisfaction to industry top level
- Strengthen support for venture companies as new funding destinations
- Maximize customer convenience through strengthened alliances with regional financial institutions
- Diversify revenue portfolio while maintaining prudent management
Business Segments
Financing for SMEs
- Overview
- Providing diverse financial services to support the management stability and growth of local SMEs.
- Competitiveness
- Customer base and trust deeply rooted in the local economy
- Customers
-
- Manufacturing
- Retail
- Services
- Construction
- Information and Communications
- Wholesale
- Food and Beverage
- Transportation
- Agricultural Corporations
- Medical Corporations
- Products
-
- Working Capital Loans
- Equipment Capital Loans
- Long-term Financing
- Guaranteed Loans
- Bill Discounting
- Card Loans
- Policy-based Financial Support
- Import/Export-related Financing
- Real Estate Collateral Loans
- Cash Flow Support Services
Corporate Payments and Cash Management
- Overview
- Supporting efficient fund management and optimization of payment operations for corporate customers.
- Competitiveness
- Customizable payment and settlement solutions
- Customers
-
- Large Corporations
- Medium-sized Enterprises
- Local Governments
- Medical Institutions
- School Corporations
- Public Interest Corporations
- Chambers of Commerce
- Shopping Street Associations
- Foundation Corporations
- NPO Corporations
- Products
-
- Corporate Account Management
- Payroll Payment Agency
- Bill and Check Handling
- Electronic Money Payment Support
- Online Remittance Services
- Fund Transfer Services
- Cash Management
- Multi-currency Payment Services
- Electronic Receivables Settlement
- Tax Payment Agency
Trust Services
- Overview
- Offering products tailored to asset management and inheritance planning needs following the start of trust operations.
- Competitiveness
- Local trust and collaboration with legal experts
- Customers
-
- High-net-worth Individuals
- Inheritance Planning Customers
- Corporate Pension Funds
- Real Estate Management Companies
- Public Interest Corporations
- Family Trust Users
- SME Owners
- Will Executors
- Asset Managers
- Asset Management Customers
- Products
-
- Education Fund Trusts
- Will Trusts
- Asset Management Trusts
- Real Estate Trusts
- Corporate Pension Trusts
- Family Trusts
- Estate Settlement Services
- Beneficiary Rights Management
- Trust Account Management
- Trustee Services
Real Estate-related Services
- Overview
- Comprehensive services from real estate lending and collateral setting to asset management support.
- Competitiveness
- Local knowledge and track record in the real estate market
- Customers
-
- Real Estate Developers
- Facility Management Companies
- Commercial Facility Operators
- Individual Investors
- Housing Sales Companies
- Leasing Companies
- Construction Companies
- Financial Institutions
- Local Governments
- Management Associations
- Products
-
- Real Estate Mortgage Setting
- Loan Guarantees
- Real Estate Trust Services
- Leasing and Capital Services
- Asset Management Support
- Real Estate Collateral Financing
- Asset Management
- Real Estate Brokerage
- Building Management Support
- Real Estate Valuation
Environmental and Regional Support Financing
- Overview
- Deploying specialized financing and funds to support environmental conservation and regional development.
- Competitiveness
- Focus on venture nurturing and environmental conservation through close regional ties
- Customers
-
- Environmental Companies
- Renewable Energy Operators
- Forestry, Agriculture, and Fisheries Corporations
- Regional Revitalization Groups
- Social Welfare Corporations
- SMEs
- Energy Improvement Operators
- Local NPOs
- Local Governments
- Environmental Improvement Projects
- Products
-
- Green Loans
- Environmental Project Financing
- Regional Revitalization Funds
- Agriculture, Forestry, and Fisheries Support Financing
- Venture Support Financing
- Environmental Technology Investments
- Renewable Energy Equipment Financing
- Social Contribution Investments
- Environmental Conservation Support
- Sustainable Finance
Competitive Advantage
Strengths
- Largest regional financial base in Shiga Prefecture
- Sales strength specialized in corporate transactions
- Long-term stable asset management capabilities
- Strong ties with the local community
- Extensive branch network
- Service expansion through the start of trust services
- Active external partnerships for free ATM usage
- Solid financial position
- High awareness of environmental conservation
- Deep understanding of local companies
- Robust workforce foundation
- IT investment awareness through consideration of latest systems
- Comprehensive customer consulting system
- High trust as a regional bank
- Stable management track record in the industry
Competitive Advantages
- Overwhelming regional presence based on approximately 40% prefectural lending share
- Early promotion of strategy to expand corporate customers from Shiga to the Kinki region
- Acquisition of permission to concurrently operate trust services for diverse financial offerings
- Expansion beyond regional bank boundaries into multiple prefectures
- Improved customer convenience through free ATM mutual access with other banks and credit unions
- Stable local customer base backed by over 50 years of history
- Brand value as an Eco-First certified company by the Ministry of the Environment
- Formation of comprehensive financial services through diverse consolidated subsidiaries
- Expansion of fee income base through strengthened corporate sales
- Active support for nurturing local venture companies
- Customer acquisition power based on long-term community trust
- Multi-channel sales network of online and offline
- Maintenance of sound financial base through prudent capital policy
- Public credit as the designated financial institution for the region
- Focus on operational efficiency through consideration of latest system introduction
Threats
- Concerns over declining competitiveness due to abandonment of core system renewal
- Increasing competitive pressure from city banks and online banks
- Risk of regional economic contraction due to population decline and aging
- Pressure on earnings from interest rate fluctuations
- Increasing burdens from regulatory strengthening and compliance
- Risk of customer outflow due to delays in digitalization
- Intensifying lending competition with rival regional banks
- Risk of regional economic downturn
- Challenges in acquiring new corporate customers
- Increasing cybersecurity risks
- Prolonged uncertainty in financial markets
- Risk of loan defaults accompanying changes in economic environment
Innovations
2020: Start of Concurrent Trust Operations
- Overview
- Obtained permission for concurrent trust operations in April 2020 to meet diversifying customer needs.
- Impact
- Expanded scope of asset management and inheritance services, creating new revenue sources.
2022: Start of Free Mutual ATM Access with Kansai Mirai Bank
- Overview
- Implemented fee-free ATM usage among three major Kansai regional banks to improve customer convenience.
- Impact
- Improved customer satisfaction and promoted usage.
2023: Extension of Core Banking System Renewal Plan
- Overview
- Postponed the originally planned 2024 system renewal to continue stable operations.
- Impact
- Achieved system stability and cost optimization.
2024: Decision to Abandon Core Banking System Renewal
- Overview
- Abandoned introduction of Hitachi-made system and will continue updating Fujitsu system.
- Impact
- Avoided large-scale investment risks and maintained stable operations.
Sustainability
- Promotion of environmental conservation activities through Eco-First certification from the Ministry of the Environment
- Strengthened cooperation with regional financial institutions via Shiga ATM Network
- Implementation of local venture company nurturing support programs
- Promotion of renewable energy and energy-saving introductions
- Financial literacy education activities for the local community