Current Situation, Challenges and
Future of Regional Finance in Japan
Hisashi Ono Deputy Director-General, Supervisory Bureau, JFSA
January 27 2014
* Any views expressed in this presentation are those of the speaker, and do not
represent the official views of JFSA.
JFSA-ADBI-IMF Joint
Conference
January 27, 2014
I. Current Situation of Regional Finance
1
Banks’ Loans to SMEs
Outstanding amount of banks’ loans to SMEs had been decreasing year on year for some time,
but it increased in July 2013, with year-on-year change of 1.29 % in October 2013.
2 Source: Amount outstanding of loans is calculated from the total of loans to SMEs by “city banks,” “regional banks”
and “regional banks II” in Bank of Japan’s statistics “Deposits, Vault Cash, and Loans and Bills Discounted.”
Regional Banks’ Loans to SMEs
Outstanding amount of regional banks’ loans to SMEs have been increasing year on year.
In October 2013, the loans increased by 1.60 % year on year.
3
Source: Amount outstanding of loans is calculated from the total of loans to SMEs by “regional banks” and “regional
banks II” in Bank of Japan’s statistics “Deposits, Vault Cash, and Loans and Bills Discounted.”
Regional Banks’ Loans to SMEs in the Area Struck by the Great Earthquake
4
Note: (1) Charts are prepared based on figures from the Bank of Japan’s statistics “Deposits, Vault Cash, and Loans and Bills Discounted. (2) Figures for “3 Tohoku prefectures” are total of loans of regional banks whose headquarters are located in Iwate, Miyagi and Fukushima prefectures. Figures for “6 Tohoku prefectures” are the total of loans of regional banks whose headquarters are located in Aomori, Akita and Yamagata, in addition to the 3 Tohoku prefectures. (3) “Nationwide total” is the total of loans to SMEs by “regional banks” and “regional banks II” in Bank of Japan’s statistics “Deposits, Vault Cash, and Loans and Bills Discounted.”
Outstanding amount of regional banks’ loans to SMEs in the three prefectures hit by
the Great East Japan Earthquake (Iwate, Miyagi and Fukushima) are increasing after the earthquake.
In October 2013, the loans increased by 3.83% year on year.
Deposit
(Right axis) 241.2 241.8 246.0 248.0 254.0 257.3 262.1 270.4 277.2 289.5 298.9
Loan
(Right axis) 178.3 177.2 177.7 181.7 186.6 191.4 198.6 198.4 201.5 206.6 212.5
Loan-to-Deposit
ratio (Left axis) 73.9 73.3 72.2 73.3 73.5 74.4 75.8 73.4 72.7 71.4 71.1
Source: Figures are calculated based on the statistics of the Japanese Bankers Association
Deposits, Loans and Loan-Deposit Ratios of Regional Banks
5
(%)
0
50
100
150
200
250
300
350
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13
万
Deposit (Right axis)
Loan (Right axis)
Loan-to-Deposit ratio(Left axis)
(Tril. yen)
(Right axis)
(Right axis)
s
s
s
s
0
20
40
60
80
100
120
140
0.5
10.5
20.5
30.5
40.5
50.5
60.5
70.5
Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13
(Tril. yen) (%)
Deposit (Right axis)
Loan (Right axis)
Loan-to-Deposit ratio (Left axis)
Source: Figures are calculated based on the statistics of the Shinkin Central Bank.
Deposits, Loans and Loan-Deposit Ratios of Credit Associations
6
Deposit
(Right axis) 103.5 105.5 107.5 109.3 111.4 113.8 115.5 117.4 119.7 122.6 124.8
Loan
(Right axis) 62.6 62.2 62.0 62.6 63.4 63.5 64.8 64.1 63.7 63.7 63.6
Loan-to-Deposit
ratio (Left axis) 60.5 58.9 57.7 57.3 57.0 55.8 56.2 54.6 53.2 52.0 51.0
s
s
s
s (Right axis) (Right axis)
Source: Figures are calculated based on the statistics of the Shinkumi Federation Bank.
Deposits, Loans and Loan-Deposit Ratios of Credit Unions
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
15/3末16/3末17/3末18/3末19/3末20/3末21/3末22/3末23/3末24/3末25/3末
(%) (兆円)
0
2
4
6
8
10
12
14
16
18
20
預金(右軸)
貸出金(右軸)
預貸率(左軸)
7
Deposit
(Right axis) 14.8 15.2 15.6 15.9 16.0 16.3 16.3 16.7 17.2 17.7 18.2
Loan
(Right axis) 9.1 9.1 9.1 9.3 9.3 9.3 9.4 9.4 9.4 9.4 9.5
Loan-to-Deposit
ratio (Left axis) 61.7 59.8 58.8 58.3 58.2 57.4 57.4 56.1 54.7 53.3 52.4
(Right axis)
(Right axis)
s
s
s
s
2.04 2.04 1.961.82
1.70 1.641.58
1.54
1.98 2.00
1.79
1.141.80 1.79
1.71
1.73
▲ 0.64▲ 0.77 ▲ 0.71
▲ 1.18
▲ 0.72
▲ 0.61 ▲ 0.29 ▲ 0.36
0.24 0.180.09 ▲ 0.41
▲ 0.03▲ 0.10 ▲ 0.12 ▲ 0.08
1.01
0.800.64
▲ 0.41
0.64 0.650.72
0.81
14.2
10.210.8 10.7 10.6
11.3 11.611.9
11.2
4.54.0
3.73.4 3.2 3.2 3.2 3.1
0
2
4
6
8
10
12
14
▲ 1.5
▲ 1.0
▲ 0.5
0.0
0.5
1.0
1.5
2.0
2.5
Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13
Core net business profits Real net business profitsCredit-related expenses Stock-related incomeNet profit Capital adequacy ratioNon-perfoming loan ratio
(%)(Tril. yen)
Regional Banks’ Financial Statements
8
(internationally active banks based on the Basel III requirements)
(domestic banks based on the Basel II requirements)
Note: (1) Capital adequacy ratios from March 2006 to March 2009 do not include Ashikaga Bank, which was under special public management during that period. (2) Operating profits from core business is equal to operating profits excluding realized gains/losses on JGB holdings.
6.15 6.47
5.61 5.20 5.10
4.75 4.34 4.17
6.30 6.26
4.82
3.37
5.35 5.96
5.33 5.46
▲ 3.05 ▲ 3.26 ▲ 3.03 ▲ 3.11 ▲ 2.75
▲ 2.30 ▲ 2.31 ▲ 2.02
0.62 0.70 0.03
▲ 1.57
▲ 0.06 ▲ 0.57 ▲ 0.43 ▲ 0.41
2.66 2.70
0.90
▲ 2.09
1.54 2.00
1.36
2.17
11.2 11.9 11.7 11.8
12.3 12.6 12.8 13.0
7.1 6.5 6.4 5.8 5.8
6.0 6.3 6.4
▲ 8.0
▲ 6.0
▲ 4.0
▲ 2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
▲ 6
▲ 4
▲ 2
0
2
4
6
8
10
Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13
Core net business profits Real net business profits Credit-related expensesStock-related income Net profit Capital adequacy ratioNon-perfoming loan ratio
(%) (Tril. yen)
0
9
Credit Associations’ Financial Statements
Note: Total of net profits do not include the total net loss of 10.1 billion yen for those credit associations that used measures under Act on Special Measures for Strengthening Financial Functions.
0.90 0.98
1.08 0.95
0.81 0.83 0.78 0.81 0.81 0.92
1.02 1.06 0.94
0.59
0.85 0.85 0.84 0.93
0.03 0.06 0.06 ▲ 0.02
▲ 0.18
0.01 ▲ 0.03 ▲ 0.03
▲ 0.00
0.20 0.15 0.24
▲ 0.02
▲ 0.37
0.14 0.08
▲ 0.10
0.27
9.60 9.60 10.10 10.00
10.10 10.90 11.00 11.14 11.30
11.90
10.70 10.30 10.30
9.00 8.20 8.00
8.50 8.40
▲ 8.0
▲ 6.0
▲ 4.0
▲ 2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
▲ 1.2
▲ 0.8
▲ 0.4
0.0
0.4
0.8
1.2
1.6
2.0
2005/03 2006/03 2007/03 2008/03 2009/03 2010/03 2011/03 2012/03 2013/03
Core net business profits Real net business profits Loss related to stocks
Net income Capital adequacy ratio Non-performing loan ratio
((Tril. yen)
0
10
Credit Unions’ Financial Statements
(%)
Note: Total of net profits do not include the total net loss of 21 billion yen for those credit unions that used measures under Act on Special Measures for Strengthening Financial Functions.
Even after the expiration of the Act on Temporary Measures to Facilitate Financing for Small and
Medium-Sized Enterprises, more than 90 % of applications for changes in loan terms are accepted by
financial institutions.
Expiration of the Act on Temporary Measures to Facilitate Financing for SMEs
Financial Institutions’ Response to SMEs’ Requests for Loan Term Change
(the rate of requests loan term change accepted: number of loan terms changed/number of applications)
87.9% 90.0% 91.8% 92.3% 93.0% 93.3% 93.4% 93.4% 93.5% 93.6% 93.6%
11
as of August 2013
II. Challenges of Regional Finance
12
- Deposits have been increasing but lending has been flat. As deposits are not used for lending, loan-deposit ratio has declined.
- Interest margin is diminishing due mainly to a decline in loan
rates. Profits from lending have also decreased.
Financial institutions’ loan-deposit ratios and profitability
*Margin between deposit rates and loan rates = loan rates – interest rates on deposits and bonds
Source: the Japanese Bankers Association
In the last 20 years, although nominal interest rates (contracted loan rates) have
been declining, the level of real interest rates have not declined due to deflation.
Nominal interest rates and real interest rates in deflation
Real interest rates = contracted loan rates – rate of inflation (GDP deflator) Loan interest rates are rates for long-term loans, calculated for all banks. Source: Bank of Japan, Cabinet Office.
Margin between deposit rates and loan rates
Source: the Japanese Bankers Association
Interest rates on
deposit and bonds
Margin between deposit
rates and loan rates
Loan rates
Financial Institutions’ Situation and Challenges
13
Banks’ JGB holdings have been increasing.
Banks’ JGB holdings
(Tril. Yen)
Source: “Japan’s Flow of Funds” statistics, Bank of Japan.
(%)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0
50
100
150
200
250
300
350
400
450
500
Tril. yen
FY
Depository Institution holdings Share of AssersAssets
Declining Trend of Banks’ Loan-to-Deposit Ratio
Loan-to-deposit ratios of domestic banks by areas
Figures at end-March, except for 1998 for which figures at end-April are used. Loan-deposit ratios are calculated as loans divided by
deposits (including negotiable deposits) and multiplied by 100.
Source: “Deposits, Vault Cash, Loans and Bills Discounted by Prefecture (Domestically Licensed Banks),” Bank of Japan.
50
60
70
80
90
100
110
120
98年 99年 00年 01年 02年 03年 04年 05年 06年 07年 08年 09年 10年 11年
全国 北海道 東北 関東 北陸
中部 近畿 中国 四国 九州・沖縄
(%)
14
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
All region
Chubu
Hokkaido Tohoku Kanto Hokuriku
Kinki Chugoku Shikoku Kyushu / Okinawa
Increasing Importance of Management of Financial Assets in Aging Japan
Share of households’ savings
by different age groups
Savings of households
by different age groups
Source: “Family Income and Expenditure Survey (Savings and Liabilities) (2010),”
Ministry of Internal Affairs and Communications; “Public Opinion Survey on
Household Financial Assets and Liabilities (2010),” Bank of Japan.
0
500
1,000
1,500
2,000
2,500
~29歳 30~39歳 40~49歳 50~59歳 60~69歳 70歳~
(万円)
一世帯当たりの貯蓄保有額(家計調査)
「年金支給開始時に最低準備しておく金融資産残高」(家計の金融行動に関する世論調査)
Source: “Family Income and Expenditure Survey (Savings and Liabilities)
(2010),” Ministry of Internal Affairs and Communications.
60歳~69歳34.1%
70歳~28.3%
50歳~59歳19.5%
~29歳0.4%
30歳~39歳5.2%
40歳~49歳12.5%
15
70’s~
60’s
50’s
40’s
30’s 20’s
20’s 30’s 40’s 50’s 60’s 70’s~
Ten thousands
Desired amount of financial assets at
pensionable age (based on the poll)
Savings per
household
(Age groups)
Japanese SMEs Going Overseas
0
200
400
600
800
1,000
1,200
5千万円以下 5千万円超 1億円超 3億円超 10億円超 100億円超
2004年度末
2009年度末
(社)
Number of firms with overseas affiliated companies by size of equity capital
Source: “Survey of Overseas Business Activities,” Ministry of Economy, Trade and Industry.
16
As of end-March 2005
As of end-March 2010
less than 50
million yen
over 50
million yen
over 100
million yen
over 300
million yen
over 1 billion
million yen
over 10 billion
million yen
Financial System Council: Working Group on the Medium- and Long-Term
Modalities of the Japanese Financial Industry
• In March 2011, the Minister of State for Financial Services requested the Council to investigate:
“the medium- and long-term agenda for developing the Japanese economy and financial
industry, by enhancing the international competitiveness of Japanese financial institutions,
improving financial functions in regional economies, and combining these two.”
• In June 2011, the Financial System Council: Working Group on the Medium- and Long-Term
Modalities of the Japanese Financial Industry was established.
• On May 28, 2012, the Working Group compiled and released the report titled “The Japanese
Financial Industry: Desirable State in the Medium- and Long-Term (Present State and Future
Outlook).”
The report focused on three challenges:
• Enhancement of the international competitiveness of the Japanese Financial
Industry
• Improvement of the financial functions in regional economies
• Provision of financial services that meet the needs of the people
17
The report is available here: http://www.fsa.go.jp/en/refer/councils/singie_kinyu/reports/20120831.html
“The roles of the financial industry”
(1) To support the real economy
(2) To lead the economy as a growing industry itself
Towards a financial industry creating values that meet the needs of customers
Financial institutions are required to play roles such as;
• Fulfillment of the risk conversion function
• Function of the information transmission
• Execution of management strategies with a greater emphasis on the customer
perspective
• Development and expansion of business foundations
• Nurturing of experts in finance
Towards a New Financial Industry
18
• Urgent issues faced by regional economies
(1) Rehabilitation and revival of local SMEs
(2) General revitalization of individual rural communities
(3) Promotion of new industries and New Town Planning (“compact-city projects”)
• Broadening financial institutions’ means of taking risks
(1) Strengthening of the risk conversion function
• Making loans and investment without depending on real estate for collateral
(utilization of Asset Based Lending [ABL], etc.)
• Utilization of investment funds (venture capital, business turnaround funds, and
region-based funds, etc.)
(2) Expansion of the function of information production and transmission
• “Industry, academia, finance + government” collaboration (“accumulation of
knowledge and information in finance”)
• Development of human resources with the ability to discern the sustainable
business potential of companies and industries; utilization of outside experts
(3) Reforms on human resources and know-how, financial affairs, and organizational
affairs
• Implementation of integration/realignments and cooperation/alliances among
different financial institutions, etc.
How Financial Institutions Should Be – Local corporate financial services
19
• Challenge for Japanese financial institutions: Enhancement of their capacity to
develop and sell investment products in response to a wide variety of needs of
financial services users
• Development of human resources (personnel who possess financial knowledge
and attach importance to the customer perspective, cultivation of sales people
assuming the professional responsibility [autonomous professional responsibility backed by
specialist knowledge], etc.); and, improvement of the transparency of financial products
and services
• Reviewing the state of institutional investors’ asset management (including the
development of microfinance-based funds, which mediate small contributions by
ordinary people in empathy with investment projects)
• Managerial efforts for the development of products and services in appropriate
response to a wide variety of needs of services users
• Fostering of independent financial intermediaries and neutral financial advisors;
and, reviewing the state of the production and sales separation for financial
services
• Reviewing the state of distributors’ sales channels
How Financial Institutions Should Be – Personal financial services
20
• Correction of factors that are preventing financial institutions from
supplying funds in ways conducive to economic growth
• Development of promising new industries and markets related to medical
and geriatric care, environment and biotechnology, and agriculture in
local communities through the “Industry, academia, finance +
government” collaboration efforts
• Development of an environment which encourages financial institutions
to actively exercise their risk conversion and function of information
production and transmission.
For example, (1) institutional improvement for ABL, (2) spread and promotion of
electronic monetary claims, and (3) diversification of financing methods, mainly a
method for the provision of quasi-equity, such as the use of Debt Debt Swaps
(DDSs).
• Support for financial institutions to expand and reinforce their business
foundations
Public-Private Collaboration Efforts – Local corporate financial services
21
• Strengthening human resources for the enhancement of personal
financial services
• Promoting financial and economic education to improve financial
literacy of customers
• Supporting the entry and development of new players (independent
financial intermediaries and neutral financial advisors, etc.)
• Creating environments helpful for developing and providing
financial services in flexible response to changes in the needs of
individuals
• Transformation of personal funds into capital inducing economic
growth – Expansion of the capacity to supply funds in ways conducive to economic growth through
institutional investors’ risk conversion function
– Opening up of new fund mediation channels
(For example, nurturing of microfinance-based funds)
Public-Private Collaboration Efforts - Personal financial services
22
III. Future of Financial Institution
23
Effective financial intermediation with appropriate risk
management by financial institutions
Complete end of deflation and
contribute to sustainable economic
growth and business expansion
Sustainable safety and soundness of each
financial institution and the entire
financial system
• Identify developments within financial institutions
and markets on a real-time basis and address
potential risks.
• Identify and analyze important issues across the
industry, identify challenges, examine remedies, and
develop policy responses.
• As a general rule, major financial institutions are
subject to the monitoring from the viewpoint of
better business operations (best practice).
(1) Monitor timely and address appropriately economic and market changes
within/outside Japan
(2) Contribute to the current economic policy to overcome deflation, leading to the
following positive cycle
• Fixed point observations of each financial institution
• Focus on the examination of whether financial institutions
meet the criteria set in laws, regulations and inspection
manuals (minimum standards)
Past financial inspection
New financial inspection (New financial monitoring)
• Monitoring of financial systems (with macro-prudential perspectives)
• The FSA continuously monitors what is happening in the financial system, and identifies and addresses potential threats against the financial
system at an early stage.
• Introduction of horizontal review (three mega financial groups, some regional banks, and major insurance companies, etc.)
• The FSA selects important issues for examination which are common to multiple financial institutions and examines the efforts for such issues
across institutions from a unified viewpoint.
• The FSA improves the quality of financial institutions management and raises the level of the financial industry through the review.
(1) Analyze the sustainability of financial institutions’ earnings structure, (2) focus on customers’ business
potential in credit screening, and (3) respect the financial institutions’ assessment for small assets, etc. Review and challenges of the
monitoring method:
Current situation
Financial inspections have generally been aimed at ensuring the financial
soundness and legal compliance of financial institutions
Future challenges
→ The Inspection Bureau and the Supervisory Bureau shall work together to deeply understand the actual conditions of financial
institutions and systems. (*The FSA will review its organizational structure as necessary.) New framework
1. Summary of Financial Monitoring Policy for Fiscal Year 2013
24
2. Outline of the Annual Supervisory Policy for Regional Financial Institutions for Fiscal Year 2013
1. Performing an Active Financial Intermediary
Function, including Management Support for
SMEs
2. Risk Management and Regional
Financial Systems Stability
3. Improvement of Customer
Protection and Convenience for
Users
• To pull Japan out of deflation and achieve powerful growth, financial institutions are expected not only to
support business improvement and recovery of customer enterprises, but also to play their primary role more
effectively and give strong support for the development and growth of their customer enterprises, by actively
providing funds including new loans, while controlling risk appropriately.
• As such, it is important to encourage regional financial institutions to become actively involved in the
provision of new loans that will likely result in business improvement and recovery, development and growth
of customer enterprises, taking into consideration the “Japan Revitalization Strategy” adopted by the Cabinet
in June 2013.
Considering the above, in this fiscal year, the FSA will supervise the performance of financial intermediary
functions by regional financial institutions from the following viewpoints.
(1) Promotion of Initiatives of New
Loans by Financial Institutions which
Emphasize Growth Potential
(2) Deepen Region-based
Relationship Banking
(3) Support for Business Improvement,
etc., to SMEs
Areas to Be Emphasized in Supervision
25
3. Viewpoints for Supervising the Performance of Financial Intermediary Functions
The FSA will encourage the active involvement of regional financial institutions in the provision of
new loans, by intensively verifying their efforts to promote new loans that will likely result in business
improvement, business recovery, development and growth of their customer enterprises.
26
(1) Promotion of Initiatives of New Loans by Financial Institutions which Emphasize Growth Potential
Regional financial institutions should continue and reinforce the efforts to promote region-based
relationship banking involving an entire organization, by setting up a business model looking ahead to
the future, recognizing that region-based relationship banking is a way to contribute to users, the
economy, and society in the relevant region, as well as improving their own financial profiles.
(2) Deepen Region-based Relationship Banking
This fiscal year is considered crucial for financial institutions to start their full scale support for
improvement of SMEs’ business profiles, and reinforcement of business structure.
Each financial institution should work towards real improvement of SMEs’ business profiles, by
providing greater support for business improvement and recovery, such as support for devising highly
effective business rehabilitation plans through performing an active consulting function while
coordinating and cooperating with outside experts and other financial institutions.
(3) Support for Business Improvement, etc., to SMEs
4. Outline of the Regional Economy Vitalization Corporation of Japan
On March 18, 2013, the Enterprise Turnaround Initiative Corporation of Japan was
fundamentally reorganized and initiated operations with expanded functions as the “Regional
Economy Vitalization Corporation of Japan (REVIC).”
27
The objective of REVIC is to vitalize regional economies through the formation of groups of
healthy companies and the securing/creation of jobs by providing support for business
turnaround based on selection and concentration of business and business restructuring; and
support for starting up new business/implementing business change, and regional revitalization
projects.
(1) Direct support for business turnaround
Deadline for deciding support: End of March 2018 Support period: “Less than five years” In the case of a large company, the name of the company will be publicly announced.
(2) Enhancement of regional revitalization ability
Enhancement of cooperation such as dispatching experts to the SME Business Rehabilitation Support Cooperatives and to regional financial institutions
Dispatch of experts to, and capital injection/loans to, subsidiaries for business turnaround Dispatch of experts and capital injection for business turnaround funds
Main Functions
(3) Support for regional revitalization
Dispatch of experts to regional financial institutions Dispatch of experts and capital injection for regional revitalization funds
28
Purpose:
1: Providing New loans - Efforts to provide new loans to start new businesses/ companies - Efforts to support business improvement - Efforts to provide loans that don’t rely excessively on mortgage collateral, etc.
2: Improving profits in the main business (support for expanding sales) - Efforts to expand sales channels - Efforts to expand business, etc.
3: Support for business improvement/business turnaround, etc. - Active efforts for business turnaround - Efforts in cooperation with outside organizations - Efforts through the utilization of investment funds, etc.
4: Support for initiating business - Efforts for identifying customers aiming to start new businesses - Efforts through “industry, government, academia, finance” collaboration, etc.
Main structure:
5. Casebook for the Provision of New Loans and Support for Business Improvement/Business Turnaround
• The casebook collects examples of pioneering initiatives or cases that should be widely practiced with regards to: providing new
loans, improving profits in the main business, supporting business and turnaround, and support for initiating business.
•These cases are promulgated and published in order to encourage financial institutions to take voluntary action while also serving
as a reference for other parties supporting business improvements.
• New loans and support for the commercialization of projects to solve regional problems
• Support for business turnaround through the utilization of “management support funds”
• Upgrading actions for ABL: “Development Manual for ABL Business” and the introduction of “Assessment System for Movable Properties”
• Matching business demands and supplies through the utilization of databases • Support for new product development and the development of sales channels
in order to increase sales
• Examples of business improvements led by second-tier main banks • Consultation and information provision in cooperation with the Federation of
Small Business Associations • Support for business turnaround through the utilization of regional
revitalization funds and the conversion of debt into “equity-like debt” (DDS)
• Support for business start-ups through regional “industries, government, academia” collaboration (management of support facilities established by cities)
• Support for the establishment of public-private joint entities through project finance
Thank you for your attention.
29