The Role of Regional Financial Institutions in the Post-COVID-19 Era: Challenges for Corporate Support Beyond Finance
摘要
This chapter takes up regional trading company (“Shosha” in Japanese) function and personnel placement business as initiatives by regional financial institutions to support the core businesses of their client companies. The authors examine what should be addressed for these operations to be appreciated by client companies based on their corporate questionnaire survey. These new services are attracting the attention of borrower firms as their main concerns have shifted from cash management in the post-domestic banking crisis era to their core business—developing customers and sales channels or recruiting and training employees. As a result, regional financial institutions cannot survive through traditional deposits or lending services alone. This is consistent with the decline in profits from deposits and loan operations in the Japanese banking industry, as Ono (Chap. 3 ) points out. The analysis in this chapter reveals that client firms’ intentions and expectations regarding the use of both regional trading companies and recruitment services are generally low. However, the more highly a company rated the response of its main bank to the Covid 19 disaster, the higher its intention and expectation of using such services. The authors point out that the key to gaining acceptance of regional trading company businesses and recruitment services is to properly understand the challenges faced by borrower companies and build a business model that increases their corporate value. In his comment, “Transition to Problem-Solving Finance in Regional Financial Institutions,” Yoshiaki Ogura discusses the conditions for the success of a regional trading company’s business and recruitment services based on the findings of academic research on venture capital and relationship banking.