What is finance in the corona era? Interview with the New Commissioner of the Financial Services Agency 13:31 August 21st
Ryozo Himino became the new Secretary of the Financial Services Agency. When you become the top executive in the financial industry, you may think of “dwarfness”, but its gentle expression and narrative are impressive. Mr. Himino interviewed how he is trying to steer the FSA, while the spread of the spread of the new coronavirus is not forecast. (Akihiro Shibata, Akihiro Shiraishi)
The biggest challenge Corona response
Ryozo Himino is 60 years old from Toyama prefecture. After entering the Ministry of Finance in 1983, he held major posts such as "Bank First Section Manager" who oversees a large bank at the Financial Services Agency. For four years from 2016, he is also an “international group” who has served as the top “International Finance Deliberation Officer” in charge of international finance at the Financial Services Agency.
As the Commissioner of the Financial Services Agency, the biggest challenge is how to deal with the spread of new coronavirus infection. In order to support affected SMEs, the FSA flexibly responds to banks, credit unions, etc. for repayment of loans, and also utilizes real-interest and unsecured loans by the government's economic measures. Have requested that they actively seek loans.
Mr.
Himino "600,000 loans have already been disbursed in less than three months even if there is virtually no interest and unsecured loans. We take it as a whole that is quite advanced."
Mr. Himino who has shown a certain degree of support for financing. However, from now on, with the refraining from going out remaining, it is important to rebuild small and medium-sized enterprises whose sales do not return as much as they once did.
Mr.
Himino "I think that some borrowers will need to improve their management and revitalize their businesses. The true value of financial institutions will be questioned as to how they will support them. SMEs that are business managers who promote sales channels and change industries I think there is also a story of cost cuts. Making the financial structure stronger by utilizing the government's economic measures is also a menu. Such support will be for the business partner and the credit cost of the financial institution will be increased. Isn't it important to control it?"
Option to utilize public funds
On August 14, the revised Financial Function Strengthening Law came into effect to ease the conditions to make it easier for public institutions to invest public funds. Himino also said that financial institutions could use public funds to strengthen their support of their trading partners as an option.
Mr.
Himino "If you want to support your trading partners, if you have a little more capital and are able to exercise your strength to the fullest, it would be nice if you could consider the "Financial Enhancement Act" as an option. I think"
With the spread of infection, financial institutions
For financial institutions, losses will be incurred if lending burns due to the spread of infection. With the increase in bankruptcy due to the spread of infection, whether or not the soundness of the “financial system” is maintained is an important point in looking at the Japanese economy in the future. I think there is no problem with.
Mr.
Himino: I think it is true that the Japanese financial system will face various challenges in a difficult environment if we look into the future, but when it comes to the health of our feet, we are worried about something special. I'm not worried.''
On the other hand, rebuilding regional banks that support the financial system is a major issue before the spread of infection. Profitability of regional banks is declining due to population decline and prolonged low interest rates. In May, a law was enacted that specifically excludes the application of antitrust laws when regional banks are trying to integrate. There is also a view that "the reorganization of regional banks will proceed."
Mr.
Himino "I wonder if there is a question from financial institutions, "What should I do?", but it would be nice if there were various menus. Reorganization has become easier with the new law. All 103 banks are the same. I don't think it is the answer.The FSA will try to grasp the actual situation of each regional bank and will have individual dialogues. On top of that, we will improve the environment so that there are as many options as possible. I think that is what we should do.''
Response to required changes
With the spread of the new coronavirus infection, some companies are shifting their business models or reconsidering the way they work. Himino believes that financial institutions are also being asked if they can respond to these changes.
Mr. Himino
"What will happen in the region where we depended on tourism and focused on automobile parts in the future? The work style of remote work will progress, and the position of domestic manufacturing bases may change due to reorganization of the supply chain. If financial institutions do not change accordingly, we will not be able to support new initiatives. It may be a while away, but how the financial institutions can work out is a challenge that the FSA must consider. It's one of the
The structural changes in the economy triggered by the spread of the new coronavirus, the movement of fintech due to technological innovation, and the financial environment are moving rapidly. I would like to take a closer look at how Himino will lead the way in financial administration.
Akihiro Shibata, Economic Department reporter
Joined in 2004
Nagano station, Nagoya station,
now in charge of FSA
Economics Department Reporter
Akihiro Shiraishi
Joined in 2015
After going through Matsue Bureau, Economics Department