Annual Repor t 202 0

Local Industries in Yamanashi Prefecture
Wine

Preparations for High-Speed Transportation Network
Expected Effects

Sake

Increase in tourists from Kansai and Tokai regions, increase in opportunities for receiving orders, expansionof logistic facilities, and increase in residents due to expanded commuting radius to Greater Tokyo, etc.

Shinkansen Maglev Train· Oct. 2014: Minister of Land, Infrastructure, Transport and22.5% share of shipment amount ranks second in Japan.
Yamanashi wine was designated for a special label by the National
Tax Agency.

Traditional Japanese Paper

Map of Shinkansen Maglev Train RouteTourism approved the start of construction, with opening
Scheduled to start operation in 2027

planned for 2027.
Request for certain segments to enter service by the start ofSilk Fabricthe 2020 Tokyo Olympic Games.

Nakatsugawa

Sagamihara· Dec. 2015: Construction began on the Yamanashi section of
the Southern Alps Tunnel (communication route).
Osaka· Nov. 2016: Construction began on the Nagano section ofTravel time
Shinagawa – Kofu
25 minShinagawa – Nagoya 40 min
Shinagawa – Osaka 67 min

Nara

the Southern Alps Tunnel.
· Mar. 2017: Yamanashi Prefecture creates “Linear
Shipment amount of down quilts ranks third in Japan.

Jewelry

Fruits

Shipment amount of jewelry ranks second in Japan.

Local Industries
in Yamanashi
Prefecture

Environmental Future City Improvement Policy.”· Apr. 2018: Construction began on the Yamanashi section of
the Southern Alps Tunnel (mail line).

Harvest of grapes, peaches and Japanese plums ranks first in Japan.

Knit Products

Saku-Komoro
JCT

Saku-Minami IC – SakuKomoro JCT
Opened to traffic in Mar. 2011

Chuo Expressway

YachihoJoshin-Etsu Expressway
Yachiho Heights IC –Sakuminami IC
Opened to traffic in Apr. 2018

Nagasaka

Nishi Kanto Expressway

OtsukiTakaosan IC

Minami-Alps

Masuho IC – Rokugo IC
Opened to traffic
on Mar. 19, 2017

Inden Leather

Rokugo IC – Shimobe Onsen
Hayakawa IC
Opened to traffic on Mar. 10, 2019
Shimobe Onsen Hayakawa IC –Nanbu IC
Scheduled to open to traffic at
the end of 2020
Nanbu IC – Tomizawa IC
Opened to traffic
on Nov. 17, 2019

MasuhoChuo Expressway

RokugoFujiyoshida
Nakatomi
ShimobeOnsen
Hayakawa
Minobusan

Ken-O Expressway

Hachioji JCT

Kofu

ShiraneOkegawaKitamoto IC

Nagasaka JCT – Yachiho IC
Completed “planning stage
assessment” in Apr. 2015

FutabaChubu Odan Expressway

45.6% share of shipment amount ranks first in Japan.

(*) 	Station locations further
west of Nagoya are
undecided.

Chubu Odan Expressway

Shipment amount of jewelry ranks second in Japan.

Mineral Water

Yamanashi Maglev Test Line

Nagoya· Jan. 2016: Shinagawa Station construction began.

Shipment amount of shoji paper and calligraphy paper ranks
second in Japan.

Shinagawa

Kofu

Iida

Higashifujigoko Road
Subashiri IC

Subashiri IC – Gumisawa IC
Scheduled to open to traffic in FY20

Gotenba IC

Takaosan IC – SagamiharaAikawa IC
Opened to traffic on Jun. 28, 2014

SagamiharaAikawa IC
Ebina IC

Shin-Tomei
Expressway

Nanbu

Gotenba JCT

Tomizawa

Tomizawa IC – Shin-Shimizu JCT
Opened to traffic on Mar. 10, 2019
Shin-Shimizu
JCT

Tomei Expressway

THE YAMANASHI CHUO BANK 2020

1

Access between Kofu City and Shizuoka City within 1
hour and 40 minutes (1 hour faster) via the Shizuokabound opening of the Chubu Odan Expressway

Our Mission

Consolidated Financial Highlights
The Yamanashi Chuo Bank, Ltd. and Consolidated Subsidiaries
Fiscal years ended March 31

Region-Based Operations and Sound Management

Millions of yen

Maintaining a close relationship with the communities in the region where we operate,
we will contribute to the prosperity of the region and the development of its economy,
with a commitment to sound management that enjoys the trust of our customers,
while bolstering our business operations.

Long-Term Vision (Value Creation Bank)
As we approach our 150th founding anniversary, we aim to be a financial groupthat all stakeholders can rely upon to realize an enriched regional community,
delighted customers, fulfilled employees, and satisfied shareholders.

Basic Strategies of Medium-Term Management Plan
“Value+ 2022”

Yamanashi

Tokyo

2016

2017

2018

2019

2020

Ordinary Income

55,71855,73654,12052,35347,301

Ordinary Profit

13,82910,001

7,570

7,458

6,726

Profit Attributable to Shareholders of the Parent

9,452

7,282

4,920

4,908

3,764

106

(15,464)

2,135

6,740

(20,412)Net Assets

235,158

216,977

217,311

222,388

199,661

Total Assets

3,239,117

3,285,408

3,306,502

3,480,808

3,511,412

Net Assets per Share (Yen)

1,370.62

1,277.73

6,430.17

6,652.04

6,183.83

Profit per Share (Yen)

54.91

42.95

146.48147.15116.43

Capital Adequacy Ratio (Domestic Standard, %)

18.05

16.82

14.14

13.80

13.22

Return on Equity (%)

4.03

3.25

2.29

2.25

1.80

Price Earning Ratio (Times)

7.52

11.59

14.95

9.31

6.32

Cash Flows from Operating Activities

70,287(91,511)79,72582,750(23,354)

Cash Flows from Investing Activities(17,638)

245,900(27,367)

124,502(134,180)

Cash Flows from Financing Activities(2,397)(2,868)(1,783)(1,681)(2,287)

109,309260,830

311,403516,974

357,152

Comprehensive Income

Mt. Fuji

Enhance Customer Touchpoints— Aiming to be a bank that connects with all customers—●
Create Common Values— Aiming to be a bank that adapts to new environments—●
Improve Personnel Vitality— Aiming to be a bank where diverse human resources reach their potential—●

Head Office

The 3S Action Guidelines
Smile, Speed and Simple

Profile (as of March 31, 2020)
Corporate Name:The Yamanashi Chuo Bank, Ltd.

Head Office:20-8, Marunouchi 1-chome, Kofu, Yamanashi

Established:

December 1, 1941

President:

Mitsuyoshi Seki

Common Stock:¥15,400 million

Number of Shares Issued:
32,783,000 shares

Stock Listing:First Section of the Tokyo Stock Exchange

Long-Term Credit Rating:A− (Rating and Investment Information, Inc.)

Network:

Domestic: Head Office and Branches: 90 (including 1 Internet Branch), District Offices: 2,
Corporate Branch: 1
Overseas: Hong Kong Representative OfficeBusinesses:

The Yamanashi Chuo Bank Group comprises the Yamanashi Chuo Bank and four
consolidated subsidiaries. Centered on its core banking business, the Group provides anintegrated financing service that includes a leasing and credit card business. The Bank is
the leading local bank in Yamanashi Prefecture, and its sphere of operations encompasses
both the prefecture and the western part of the Tokyo metropolitan region.

Cash and Cash Equivalents

Notes(1) Amounts do not include consumption and local taxes payable by the Bank and its consolidated subsidiaries.
(2) The Bank consolidated its shares at a ratio of five shares to one share on the effective date of October 1, 2018. Accordingly, net assets per share and net income
per share are calculated on the assumption that the consolidation of shares was conducted at the beginning of the fiscal year ended March 31, 2018.
(3) The capital adequacy ratio is calculated on a consolidated basis in accordance with Bulletin Notification No. 19 issued by the Financial Services Agency in 2006
under Paragraph 2, Article 14 of the Banking Law. The Bank has adopted the Japanese standard for the calculation.

Total assets

Contents
3 Consolidated Financial Highlights
4 Message from the President
8 Yamanashi Chuo Bank Group’s Value Creation Process
10 Initiatives Ahead of 150th Anniversary of Founding (2027)
11 CSR Message, Basic Policy on CSR
12 Formulation of the Medium-Term Management Plan “Value+ 2022”
14 Initiatives to Enhance Customer Touchpoints
16 Initiatives to Create Common Values
22 Initiatives to Improve Personnel Vitality
23 Increase the Sophistication of the Management and Administration Approach
26 Strengthen CSR Based on the SDGs and ESG Principles
30 Financial Review
31 Consolidated Balance Sheets

33 Consolidated Statements of Income
35 Consolidated Statements of Comprehensive Income
36 Consolidated Statements of Changes in Net Assets
39 Consolidated Statements of Cash Flows
41 Notes to Consolidated Financial Statements
68 Corporate Data
69 Board of Directors and Corporate Auditors

Statements contained in this report regarding the Bank’s future performance do notconstitute statements of historical fact, and are thus subject to a number of risks
and uncertainties. Readers are therefore cautioned not to place undue reliance on
forward-looking statements, as factors beyond the Bank’s control and outside its
ability to predict, including general economic conditions and market fluctuations,
could cause results to diverge materially from the Bank’s projections.

THE YAMANASHI CHUO BANK 2020

(Domestic standard)(¥ billion)

(%)

3,500

10.0

18.0

3,400

15.0

8.0
3,300

12.0
6.0

3,200

Capital adequacy
ratio

9.0
3,100

Forward-looking statements

ROE/
Capital adequacy ratio(¥ billion)

4.0
6.0

3,000

ROE
2.0

3.0

2,900
0.0

2,800
March 31 2016

2

Profit attributable toshareholders of the parent

2017

2018

2019

2020

FY

0.0

2016

2017

2018

2019

THE YAMANASHI CHUO BANK 2020

3

2020

FY

2016

2017

2018

2019

2020

Message from the President

Message from the President

We strive to be afinancial institutionthat shares hopes
and dreams with ourcustomers, basedon the keywords
of “ambition” and“empathy.”

President

Mitsuyoshi Seki

Review of Year 1 of the Medium-Term
Management PlanThe Economy of Yamanashi Prefecture—Our Business Base
General Prefectural Production (fiscal 2017):
Real Growth Rate (fiscal 2017):
Shipment Value of Production in Prefecture(2018):¥3,346 billion
3.9%

Major Products and Their Share in Japanese Market
Products

Numerical control robots

Shipment Value(¥ billion)

272.3

Share
(%)

75.8

Ranking

No. 1

75.7

45.6

No. 1

Hoisting machinery

23.6

28.0

No. 1

Semiconductors / IC measuring instruments

58.6

25.0

No. 1

Mineral water

THE YAMANASHI CHUO BANK 2020

4environment.

(as of March 31, 2020)

13.8

1.9

10.8
5.9

Deposits

44.9

30.4

7.0
Yamanashi Chuo Bank
Major banks
Shinkin banks/credit unions
Agricultural cooperatives
Semi-government institutions/other

In terms of enhancing customer touchpoints, we

three-year medium-term management plan “Value + 2022.”

introduced the smartphone app “Wallet+” as a non-OTC

During the year, we strove to generate new value in lightchannel as well as launched QR code settlements, amongof the difficulty in generating earnings from our traditional

other measures.

finance operations due to the negative interest rate
Loans

49.8

27.6

a business model that is not affected by the interest rate

For the Bank, fiscal 2019 was the first year of our new,Shares in Yamanashi Pref. (%)¥2,584 billion

principles,” and we have begun to build the foundations ofMany of our customers are using “Wallet+,” as evidenced

environment.

by the fact as of June 30, 2020, there have been more than

Under the two main pillars of “new value creation” and28,000 downloads of “Wallet+” and the app is being used“bold action reforms with an eye towards transformation,”by more than 80% of our customers.

8.0

the new medium-term management plan lays out the

Yamanashi Chuo Bank
Major banks
Shinkin banks/credit unions
Agricultural cooperatives
Semi-government institutions/otherWith respect to creating common values, in order tothree basic strategies: “enhance customer touchpoints,”

increase opportunities (time) to create value with custom-“create common values,” and “improve personnel vitality,”

ers, we implemented BPI (Business Process Innovation)

as well as the two basic priorities of “increase the sophisti-

utilizing digital technology, and expanded the functions

cation of the management and administration approach”

of our “Smile One” tablets in our branches. This allowed

and “strengthen CSR based on the SDGs and ESG

us to reassign approximately 100 branch administrative
THE YAMANASHI CHUO BANK 20205

Message from the President

staff as sales staff with the aim of bolstering our consulting

the local economy.

capabilities.

Furthermore, I think it is critical for us to think deeply

In terms of improving personnel vitality, with the aim

about what exactly happiness is for people.

of developing professionals, we carried out strategic

For example, Japan ranked 62nd in the “World

placements of young staff utilizing the open recruitment

Happiness Report” (2020) published by the Sustainablesystem and dispatched staff to educational institutions

Development Solutions Network, four spots lower than inand other companies in order to acquire specialized2019. On the other hand, Yamanashi Prefecture ranked 12th

knowledge. In addition, as a mechanism to promote thein Japan in the “Regional SDGs Survey 2019” conducted

fostering and transformation of a free and open corporate

by Brand Research Institute, Inc., which means that many

culture, we introduced a tool called “T-LINE” that allows

residents of Yamanashi Prefecture are relatively happy.

all staff to directly submit new ideas to the president, inYamanashi Prefecture has lots of natural areas, is blessed

addition to starting “business casual.”

with local resources such as fruits, vegetables, and wine,

As far as increasing the sophistication of theand has the geographical advantage of being adjacent tomanagement and administration approach is concerned,

Tokyo. There is a good chance for Yamanashi Prefecture to

we are working to introduce a Risk Appetite Framework

become No. 1 in terms of happiness. I think that by quickly(RAF) to strengthen earnings and our risk managementbuilding the stage for a new era in which young people

approach. In terms of strengthening CSR based on theplay a key role, we can boost the level of happiness in

SDGs and ESG principles, we formulated the “Yamanashi

Japan as a whole.

Chuo Bank Group’s SDGs Declaration,” and are engaged in

Oddly enough, I feel that the COVID-19 pandemic has

President

Mitsuyoshi Seki

year of our medium-term management plan “Value + 2022,”

Ambition and empathy are particularly key to thisregional economic revitalization and regional contribution

provided an opportunity to take a fresh look at issues

under which we will execute the first three years of thiseffort. All officers and employees of the Bank will face theefforts from the perspective of SDGs and ESG. We havefacing society. The COVID-19 crisis has had a significant

vision.

historical hardship head on, with ambition and empathy

made progress on new initiatives, such as the January 2020

impact on the prefecture’s economy, and we need to

In addition, we realize that the most pressing issue forbased on the 3S Action Guidelines originating with thelaunch of the “Yamanashi Chuo SDGs Fund,” and going

quickly rebuild the economy in Yamanashi Prefecture.

fiscal 2020 is to help our customers in the region who havecustomer. We will provide a variety of services that will

forward we will make further contributions to the regional

For example, in the jewelry industry, which is one ofbeen seriously affected by the COVID-19 crisis.

bring smiles to customers, while warmly interacting

society based on the perspective of SDGs and ESG.

our local industries, businesses have not been able toAmid this situation, and based on “the 3S Action

with customers based on their situation, quickly finding

hold exhibitions in order to avoid having people crowd

Guidelines” of Smile, Speed, and Simple, we will provide

solutions to their problems, and keeping explanations andtogether. In response, as an alternative method, we

thorough financial intermediary functions to our customers

advice easy to understand.

have collaborated with partner companies, Yamanashi

in the region, and make progress on initiatives that

Prefecture, and the jewelry industry in the prefecture, andplease our customers, energize our personnel, and excite

staying close by our customers so that the COVID-19 crisis

We recognize that all of Japan, including Yamanashi

will hold an online jewelry fair for Chinese customers using

everyone in the area.

does not cause them to lose motivation. After that, we

Prefecture, is currently facing major social issues such as aa communication app.

Recognition of Key Social Issues
Represented by the SDGs and ESG

First of all, we will solve customers’ cash flow problems,

will work together with customers on a path to recovery

declining population and a falling birthrate together with

We want to actively incorporate such innovative

an aging population. In addition, we believe that we must

methods not only in the jewelry industry, but in alldeal with environmental problems such as climate change

industries, thereby contributing to the expansion of sales

Businesses and individuals throughout Japan are facing

today, rather than pushing the burden on to children tochannels and the recovery of the prefectural economy.

historical hardships due to the COVID-19 crisis. The Bank

deal with in the future.

Message to Stakeholders

and revitalization, and provide committed support sothat they can make a solid rebound after the COVID-19
pandemic is over.
Through activities based on ambition and empathy,

is committed to thoroughly supporting everyone who

we will deliver smiles, energy, and excitement to our

Future Management Strategy

is working hard without losing hope despite the circum-

customers, society, shareholders, and all of our otherstances. The Bank views the challenge of COVID-19 as anvarious stakeholders, as we continue to strive to be aissues through the vitality of companies. In addition, it is

We have established a long-term vision of being a “Value

opportunity to fulfill Our Mission as a financial institution,

financial institution that people can share their hopes andimportant to bring about innovation in various settings,

Creation Bank” as we look ahead to the 150th anniversary

and we will continue to work diligently to solve all of our

dreams with. We look forward to your continued support.

link this innovation with business, and use it to revitalizeof our Bank’s founding in 2027. Fiscal 2020 is the second

customers’ problems, centered on financing support.

Digital transformation utilizing digital technology will
be necessary in order to solve these two major social

THE YAMANASHI CHUO BANK 2020

6

THE YAMANASHI CHUO BANK 20207

Yamanashi Chuo Bank Group’s Value Creation Process

Yamanashi Chuo Bank Group’s Value Creation Process

Yamanashi Chuo Bank Group’s Value Creation Process
Yamanashi Chuo Bank Group’s mission is “region-based operations and sound management,” and the Bank will continue to provide newvalue to all stakeholders, including local communities and our customers, employees, and shareholders.

Leveraging our strengths, we aim to establish a sustainable“next-generation business model” that puts customers first in response to environmental changes.

Business Model

Recognition of Current Situation

Recognition of Social Issues

Value Provided to Stakeholders

Management Resources toInvest (Strength)(Input)Japan’s Issues• Declining population and aging society withlow birthrate• Rapid digitalization

Regional Society“Value Creation Bank”
Long-Term Vision

As we approach the 150th anniversary of our founding, we aim to be afinancial group that all stakeholders can rely upon to realize an enriched
regional community, delighted customers, fulfilled employees, andsatisfied shareholders.

Medium-Term
Management Plan

“Value+ 2022”

Social Capital• Changes in consumers’ lifestyles• Sustainable development of regional
economy• Contribute to the realization ofa sustainable environment and society• Dominant share in Yamanashi Prefecture• Intensifying competition with new market entrants
and other financial institutions• Continued low interest rate policy• Fertile western Tokyo market base
• Industrial base made possible by richnatural environment• Increasing interest in environmental policies

Customers• Creation of common values withcustomers through consulting• Provision of services that respond toneeds “anytime, anywhere, and of any kind”

Yamanashi Prefecture’s Issues• Increase in depopulated areas

Enhance Customer Touchpoints

Human Capital• Population leaving for large cities• Increase in business closures due to lack ofsuccessors– Aiming to be a bank that connects with all customers –• Diverse personnel possessing
high levels of expertise

New Business Opportunities
Intellectual Capital• Full use of the region’s resources

P. 14

Basic Strategies

Create Common Value– Aiming to be a bank that adapts to new environments –P. 16• Start of Shinkansen Maglev Train andChubu Odan Expressway• History and tradition from Dai-Ju
National Bank
• Insights and know-how of personnel
with vast experience working on
assignment in other organizations

Employees• Foster employee fulfillment• Development of professional personnel
capable of offering expertise

Improve Personnel Vitality– Aiming to be a bank where diverse human resources reach
their full potential –P. 22

Financial Capital• Stable financial base and risk-taking
capacity

Basic Priorities

Increase the Sophistication of
the Management andAdministration Approach
P. 23

THE YAMANASHI CHUO BANK 2020

8

Strengthen CSR Based on
the SDGs and ESG Principles

Shareholders• Ongoing corporate value improvement• Substantial and stable shareholder returns

P. 26

THE YAMANASHI CHUO BANK 20209

Initiatives Ahead of 150th Anniversary ofFounding (2027)

CSR Message, Basic Policy on CSR

Approach to Achieve Long-Term Vision

CSR Message“Together with the region, for the future”
Long-Term Vision

Basic Policy on CSR

Value Creation Bank

Since its foundation, the Yamanashi Chuo Bank Group’s constant mission has been “region-based operations andAs we approach our 150th founding anniversary, we aim to be a financial group that all stakeholders can rely upon torealize an enriched regional community, delighted customers, fulfilled employees, and satisfied shareholders.

sound management.” Guided by this mission, we will work to develop the regional economy through businessactivities in response to the needs of various stakeholders, including regional society, customers, shareholders
and employees, with a solid foundation of compliance. At the same time, we are strongly aware of the social andenvironmental aspects of Our Mission, and will contribute to the realization of a sustainable regional society.

1st Stage

2nd Stage

3rd Stage

Value+2022(April 2022–March 2025)(April 2025–March 2028)(April 2019–March 2022)

Yamanashi Chuo Bank Group’s SDGs Declaration
Guided by our Basic Policy on CSR, we have formulated the Yamanashi Chuo Bank Group’s SDGs Declaration and havefurther strengthened our CSR activities accordingly.

Yamanashi Chuo Bank Group’s SDGs Declaration

Period of bold structural reforms
for creating new value andfuture growth

Period of continued
new value creation andachieving a growth trajectory

Period of achieving
the long-term vision“Value Creation Bank”[Structural reform stage][Growth trajectory stage][Continued growth stage]

Based on Our Mission of “region-based operations and sound management,” we, as a regional financial institution, have supported the development of local companies and industries, energized communities and backed the creation of affluent lifestyles
for people living in the region while striving to realize a sustainable society, in order to contribute to the achievement of theSDGs (Sustainable Development Goals) advocated by the United Nations.
10 May 2019
President Mitsuyoshi Seki

Key measures◯ Strive to reduce environmental impact

Realize anenvironment for
creating new value

Realize growth throughvalue creation together
with the community

Become a financial groupthat continues
to create new value

To protect our lush and pristine natural environment, we will implement
initiatives to reduce our environmental impact through our businessactivities, along with supporting customers who are engaged in environmental protection and environmentally friendly businesses. Throughthese initiatives, we will work to energize regional environmental
protection activities and solve environmental problems.
◯ Develop a sustainable regional economy

As a regional financial institution, we will support the development ofregional companies and industries by providing a wide range of financial
services. At the same time, as we strive to improve financial literacy todevelop the next generation of leaders, we will work to solve a variety ofissues.

Quantitative Targets for the Final Fiscal Year of the Medium-Term Management Plan
Item

FY2019 Results◯ Appoint and utilize diverse human resources

FY2021 Targets

Interest on loans¥15.8 billion¥17.5 billion or more

Non-interest revenue¥ 7.7 billion¥ 9.0 billion or more

Net income¥ 3.4 billion¥ 3.5 billion or more

75.3%

Under 80%

OHR (Operating expenses/Core gross business profit)
THE YAMANASHI CHUO BANK 202010

By promoting diversity, we will show respect for human rights andindividual differences as we strive to enhance the work, family and daily
lives of all people, so that diverse human resources can reach their fullpotential.
The SDGs are international goals for the 2016-2030 period adopted at the U.N. Summit in 2015. Building on the principle of “leaving no one
behind,” the SDGs aim to solve a wide range of global issues, including climate change and inequality. The SDGs comprise 17 goals and 169
targets in order to realize a sustainable world for the entire international community, including industrialized countries.

THE YAMANASHI CHUO BANK 202011

Formulation of the Medium-Term Management Plan
“Value+ 2022”

Formulation of the Medium-Term Management Plan
“Value+ 2022”

In April 2019, the Bank launched its medium-term management plan “Value+ (“Value Plus”) 2022” covering the period• Enhance Customer Touchpoints

sophisticated consulting needs. Through these efforts, the Bank willfrom April 2019 to March 2022. The plan is outlined below.

The Bank will transform and expand existing branches into special-

work to enhance services for a wide range of customers.

ized function branches according to customer needs. Meanwhile,
the Shinkansen Maglev Train. Meanwhile, a declining population

the Bank will provide new services in keeping with the tide of digita-

and shortage of workers have become major social issues forlization, such as smartphone apps that allow customers to complete

In order to realize Our Mission, the Bank and its Group companies

the prefecture. These issues reflect factors such as the aging ofa variety of transactions and other procedures via the internet.

are bringing together their collective capabilities and implement-

society with a low birthrate and young people moving out of theing a wide range of initiatives. This is so that they can accurately

prefecture.

Management Policies

In the financial sector, the Bank of Japan has implemented

and promptly address increasingly diverse and sophisticateda negative interest rate policy for an extended period of time.

regional financial needs.

Faced with this situation, it has become an urgent priority for

Business Environment and Key Issues
Ahead

aims to achieve sustainable growth, by making a greater contribu-

In addition, in order to further strengthen marketing capabilities
in the western Tokyo area, the Bank’s second home market, thetion to regional economic revitalization than before, along withBank will increase staff and upgrade the support system provided

improving the value it provides to stakeholders. Moreover, the Bankby the Head Office.

will strengthen risk management, including anti-money launderingand counter-terrorist financing measures. The Bank will also imple-

banks and other financial institutions to reshape their profit• Create Common Values

structure. Meanwhile, innovative digital technology is expected to

The Bank will implement consulting sales through in-depth

laws and regulations and other rules. By fulfilling the requests andprofoundly transform conventional financial functions and services.

conversations with customers. In the process, the Bank will strive to

expectations of society appropriately, we will strive to retain andcreate common values with customers, as part of efforts to provide

improve the public’s trust in the Bank.

In this environment, the Bank launched its medium-term

In Yamanashi Prefecture, our main business base, progress is being

The Bank will implement these measures based on the newperspectives of SDGs and ESG. From these perspectives, the Bank

ment compliance measures with an emphasis on adherence to all

Regarding the Corporate Governance Code, which prescribes

management plan “Value 2022” in April 2019. Guided by the plan,value to them and maintain and improve sustainable profitability.

ahead of developments such as the opening of the Chubu Odan

the Bank will implement three basic strategies to address key

Concurrently, the Bank will substantially improve its productivity

the behavioral standards for listed companies, the Bank aims

Expressway through to Shizuoka and the start of operations ofissues ahead.

by using the latest digital technology and drastically revising

to pursue the optimal form of corporate governance for thebusiness processes.

Bank, fully taking into account the intentions of the Corporate+

made on upgrading and expanding transportation infrastructure

Value+ 2022

Plan period: April 2019 to March 2022

Our Mission

Region-based operations and sound management
Long-Term Vision

Value Creation Bank

As we approach our 150th founding anniversary, we aim to be a financial group that all stakeholders can rely upon to realize an enriched regional community, delighted customers, fulfilledemployees, and satisfied shareholders.

Value+ 2022

—A stage for creating new value and implementing bold structural reforms that anticipate the changes of the times—(First stage for achieving the long-term vision)

Enhance Customer Touchpoints
Basic Strategies

Aiming to be a bank that connects with all customers

Create Common Values

Aiming to be a bank that adapts to new environments

Improve Personnel Vitality

Aiming to be a bank where diverse human resources reach their full potential

Increase the sophistication of the management andadministration approachmedium to long term.

In order to foster greater motivation and fulfillment among individual

The Group and all management and employees will work

employees, the Bank will reform the personnel system, beginning

together to contribute to community prosperity and economic

with the development of new career paths, and nurture professional

development.

human resources capable of addressing increasingly diverse and— To Accomplish the Medium-Term Management Plan “Value+ 2022” —The 3S Action Guidelines
Smile

Medium-Term Management Plan

Governance Code, and to enhance its corporate value over the• Improve Personnel Vitality

Speed

The first step in creating common values

In this era of rapid change, we will improve

Easy-to-understand explanations towith customers begins with each employee’s

customer satisfaction by quickly andcustomers lead to better communication,

smile. A pleasant smile creates a sense of

accurately addressing customers’ issues.

and making operations simpler, streamlined,

comfort among customers and leads toand more efficient leads to greater customer

deep communication.

convenience and generates communication.

Strengthen CSR based on the SDGs and ESG principles

The Meaning of “+”  The “+” in “Value+ 2022” represents the following.
• We will + (create) common values with customers by diversifying the means for solving customer issues through our consulting services.
• We will + (create) value for the regional society by contributing to the region through CSR activities.
• We will + (enhance) employee fulfillment by creating an environment in which diverse human resources are able to play active roles.
• We will meet the expectations of shareholders and all other stakeholders by + (increasing) the Bank’s corporate value through these initiatives.
THE YAMANASHI CHUO BANK 2020

12

SimpleTHE YAMANASHI CHUO BANK 202013

Initiatives to Enhance Customer Touchpoints
1. Optimize the OTC Channel

Initiatives to Enhance Customer Touchpoints

Expand branch functions

We will optimize branches, liaisons, etc. as channels capable of responding to customers’ needs “anytime, anywhere, andof any kind.”

Increase quantity and quality of the liaison channel
With the aim of strengthening the liaison channel, the Bank is shifting to branch sales personnel as we advance branch/Head Office BPI.
In addition to increasing the number of sales personnel, we will work to enhance the sales skills of each person to increase their level ofprofessionalism.

We are working to build “next-generation-ready branches,” increase consultations at Life Square branches, and use branch space effectively.

Build model branches of nextgeneration branches

Spread and expand brancheswith Life Square

Effective use of branch space

We will build “next-generation-readyWe will increase the number of consultations

We will consider ways to effectively use

branches” giving thought to reducing

received by raising the recognition of

branch space in order to create touchpoints

business processing and branch space.

branches open on holidays and at night.

with new customers.

Illustration of strengthening the liaison channel

2. Strengthen and Expand the Non-OTC Channel
Branch administrative staff
Head Office staff

Branchadministrative staff
Head Office staff

The Bank will strengthen and expand the non-OTC channel as a channel that can respond to customer needs “anytime,
anywhere, and of any kind,” and achieve connections with all customers.
Enhance touchpoints
with customers

Branchsales staff

Branchsales staff

Increase in liaisons’ effective consultations with customers
In order to increase opportunities to respond to customers’ financial needs, in fiscal 2021 we want to increase effective consultations with

Strengthen consultation
service stanceStrengthen contact points
with young people

Respond to cashlesssociety

We will strengthen connections with customers
by enhancing the non-OTC
channel, including building
an online consultation
system.

We will strengthen connections with young people.

As a part of the movement
towards a cashless region, we
provide services that bothenhance customer convenience and help improvebusinesses’ productivity.

We will optimize the ATM
network amid the gradualdeclining trend in ATM
usage.

• Build online consultation system • Introduce “Wallet +,”a smartphone-exclusive app• Online consultation service for• Roll out bookless accounts at all
corporations• Introduce brand debit cards• Introduce QR code settlements• Enhance credit cards• Reduce the number of ATMs

branchescustomers by 30% compared to fiscal 2018.

Optimize the branch network
In fiscal 2019, we moved four branches via the branch-in-branch method, and transitioned five branches from full banking branches into
special function branches, thereby lightening the branch network.
In addition, with respect to those branches for which closure will have a large impact on the local community due to the distance
between branches and other factors, in fiscal 2020 the Bank plans to move two branches into the facilities of other businesses.

Full banking
branchSpecialfunction
branchFull banking
branchSpecialfunction
branch● Revise the branch functions of full banking branches in
Yamanashi Prefecture → Change approximately 20% tospecial function branches (Approximately 10 branches)(Compared to end of March 2019)● Expand branches that have achieved efficiency gains
through branches in branches → Approximately 15%of branches in Yamanashi Prefecture (Approximately 10
branches) (Compared to end of March 2019)● Realize lightweight branches by relocating them toinside the facilities of other businesses

Concentrate personnel freed up through the optimization of the branch network in Yamanashi Prefecture in the western Tokyo area
We will increase the number of staff and enhance the quantity and quality of services by strengthening the support system (Western Tokyo Consulting Sales Department).

THE YAMANASHI CHUO BANK 2020

14

THE YAMANASHI CHUO BANK 2020

15

Use ATMs efficiently

by 10% during the period of
the current medium-term
management plan
• Install joint ATMs withconvenience store-affiliatedbanks• Partnerships with financial
institutions in Yamanashi
Prefecture (explore opening up
of ATMs to one another)Initiatives to Create Common Values

Initiatives to Create Common Values

1. Deepen and Expand the Consulting Field• Support for healthcare and nursing care businesses

Bank provides opportunities for them to tour overseas markets. For

power and maintain and expand employment, and otherwise lead

Shift to consulting sales based on deep conversations withWe have established a support platform for the healthcare and nurs-

customers who are considering starting business transactions withto sustainable advancement of the regional society by supportinging care fields as a collaborative effort among the Bank, its Groupoverseas companies, the Bank proposes that they acquire credit

businesses that will lead the region’s future as well as businesses thatshared value with customers by solving diverse issues.

companies and external organizations. Besides financial support,

survey reports on the overseas companies. For customers who areare undertaking initiatives aimed at enhancing corporate value andsuch as loans and leases, the platform provides a comprehensive

seeking to expand their overseas sales channels, the Bank provides

competitiveness in accordance with the 17 goals of the SDGs.

Status of initiatives to improve themanagement of small and medium-sizedenterprises (SMEs) and revitalize the region

lineup of high-quality support services, ranging from free-of-charge

information on various business meetings and makes buyer match-support and information from a dedicated professional consultant ining proposals using the internet.

Policy on initiatives for supporting the management ofSMEs

customers to realize “comprehensive financial services” and create

the healthcare and nursing care fields at the Head Office to support• The Yamanashi Chuo Bank startup support loan
“Fine Start”

from specialized organizations. This support addresses all manner of

In addition, we offer the Yamanashi Chuo Bank startup support

needs, from starting a business to business improvement, enteringloan “Fine Start,” with the aim of contributing to regional economic

new fields and business succession.

revitalization by offering financial support to customers who arestarting new businesses in Yamanashi Prefecture, thereby creating

In order to contribute to the prosperity and economic advancement of the region, the Bank is working to promote community-• Support for agri-businessbased finance and make financing smoother.

Since April 2011, the Bank has operated an Agri-Business School

This loan features a “performance-linked preferred interest rate”

to support business operators who are seeking to conduct agri-that is linked to the level of achievement of the startup plan in ordercompanies and external institutions as well as external experts, webusiness with business sensibility and an entrepreneurial spirit.

to boost the business motivation and mindset of business founders

will introduce organizations that are the best suited to solve our cus-

This course teaches management subjects such as finance, human

tomers’ management issues. Also, we will work to provide timely andresource development, distribution, production management, andappropriate solutions, including proposals for using support offer-

marketing. It also incorporates extracurricular course activities suchings dependent on the progress of solutions. Furthermore, we will

as field work and on-site learning tours.

Specifically, by utilizing the network with each of the Bank’s Groupendeavor to support smooth provision of funds and management

new businesses and maintaining and expanding employment.

as they work to grow and expand their new businesses.

• Support for tourism-related businesses● Financing support for startups/new businesses

The Tourism Support Desk conducts a range of activities. It holds

Fiscal 2019    179 loans   ¥3,521 million

inbound tourism seminars, assists business customers in collaboration with Tourism Advisors and external organizations, and• Yamanashi Chuo Bank Regional Revitalization Funddisseminates tourism-related information focused on tourism within

improvement, such as by sincerely and appropriately responding to

We offer the Yamanashi Chuo Bank Regional Revitalization Fund

Yamanashi Prefecture via social networking services.

requests from customers for changes to repayment terms.

to provide further support to growth fields and local industries,

Specifically, with the aim of regional revitalization through theThrough these efforts, we will provide support with the aim ofincluding healthcare and nursing care, the environment, agriculture,revitalization of tourism, we support tourism-related businesses byhelping our SME customers resolve their various management issues.

tourism, and manufacturing.

utilizing higher levels of expertise, information, and personnel in● Financing resultscooperation with funds and other external institutions.

Support for business startups, new business
cultivation, growth fields, and fund procurement

Fiscal 2019  736 loans  ¥12,818 million

Moreover, the Bank is carrying out the “Katakoto Eigo Project”(Beginner’s English Project) at all branches. This initiative seeks to• Support for startup and establishment

facilitate the development of towns where residents can com-

The Bank has set up a Startup and Establishment Support Desk. As
a collaborative effort among the Bank, its Group companies andexternal organizations, we have established a comprehensive support platform for customers in the startup and establishment phase.
The platform provides a wide range of support to such customers,• Support for environmental businesses

municate effectively with inbound tourists in English by improving

For customers who are interested in the power generation business,

the English language skills of the residents of Yamanashi Prefecture.

such as solar power and small hydropower, energy management

The Bank is also working to introduce inbound tourists to clientsystems, energy-saving, power conservation, environmental load

companies through a native English-speaking business advisor.

reduction management and other areas related to the environment,from support for business planning formulation to raising startup

we provide management advice from Head Office environment-

funds and achieving business growth after establishment.

related field experts, as well as business matching with facility

In addition, with the aim of contributing to regional economic

Business matching

operators and consultants.

revitalization by supporting customers who are starting new businesses in Yamanashi Prefecture, we hold business startup seminars,• Matching the universities’ technology seeds withcompanies’ needs• Support for overseas businessincluding schools for business startups and secondary startups, head

The Bank provides business matching services to customers,

We have established an Overseas Business Support Desk in theup the female entrepreneur support project, as well as offer theparticularly those in the manufacturing sector. Such activity includes

Head Office. The Overseas Business Support Desk manager acts as a

Yamanashi Chuo Bank startup support loan.

disseminating information about the technology seeds held by thecoordinator, collaborating with partnering overseas financial institu-

University of Yamanashi and Yamanashi Gakuin University, as welltions (8 institutions) and organizations supporting overseas businessand employees assigned overseas (in Thailand and Vietnam). Basedon this collaboration, the manager provides information and various

The Bank manages the “Yamanashi Chuo Bank SDGs Investment

types of support according to the stage of each customer’s overseas

Limited Partnership,” an investment fund that invests in businesses

business development.

at all stages, from startup and foundation to growth, management

Specifically, the Bank conducts a range of activities. For customers
who are considering expanding their businesses overseas, the
THE YAMANASHI CHUO BANK 202016

as efforts by University of Yamanashi Guest Social Collaboration• Yamanashi Chuo Bank SDGs Investment Limited
Partnershipdevelopment, in addition to the Hong Kong Representative Office

Coordinators to match technology seeds with companies’ needs.

improvement and revitalization, as well as business succession.
The purpose of this fund is to strengthen the region’s industrial
THE YAMANASHI CHUO BANK 202017

Initiatives to Create Common Values

Activities for regional revitalization• Business matching through bank-sponsoredbusiness events

Initiatives to Create Common Values

The Bank established the Yamanashi Chuo Bank Regional

Initiatives to support industry throughcooperation with industrial, government, andacademic institutions• Regional revitalization through the Yamanashi Chuo
Bank Regional Revitalization Fundthe “Yamanashi Food Sector Business Matching Fair 2019 in TOKYO”

Participation in regional development such as
regional revitalization projects

Revitalization Fund in December 2015 in order to contribute to• Collaboration with universities

and the “Yamanashi Food Business Liaison Conference.”• Activities in collaboration with regional communities

the prosperity of the local community and the revitalization of the

The Bank has concluded agreements on comprehensive partner-

We worked to help customers cultivate sales channels by holding

Since fiscal 2005, we have completed 3,221 business matching

Aiming to strengthen mutual partnerships targeting regional

local economy by providing grants to organizations and individuals

ships with each of the following universities: the University ofdeals by utilizing our customer information via our network, includ-

economic development, the Bank has concluded partnershipengaging in efforts that contribute to regional revitalization.

Yamanashi, Yamanashi Prefectural University, Yamanashi Gakuin

ing through these bank-sponsored business events.

agreements with local governments in Yamanashi Prefecture.

● Business matching deals through the Bank’s network and bank-

Under these agreements, the Bank is collaborating with partneringfoundation in March 2016, the fund has been offering grants topublishes “Direct News on Business Opportunities Originating fromsponsored business events

local governments to revitalize agriculture, commerce and indus-

startups as a public interest purpose business. Through fiscal 2019,

the University of Yamanashi” and Yamanashi Gakuin University’s

Fiscal 2019    402 lines

try, promote relocation to Yamanashi Prefecture, and promote

aid has been offered to a total of 237 businesses.

“Business Navigation,” both of which are reports that present the

tourism and town development. Activities include promoting
regional products at its branches in Tokyo, assistance with holding

Since transitioning to become a public interest incorporated

University, and Yamanashi Gakuin Junior College. The Bank

Going forward, the Bank will continue to work to revitalize theresearch activities of each university. In addition, the Bank has

region by offering grants.

dispatched an employee to serve as a Community Collaboration

relocation counseling events, as well as coordinating PR events in

November 2017, the Bank concluded an agreement on partnership

regarding Regional Revitalization through the Use of Vacant Houses,”

The Bank has concluded the “Partnership Agreement on

Property (PUiP). In these and other ways, the Bank is implementing

with Koshu City and a real estate information website operator, andAttracting and Retaining a Resident Population” with Yamanashi

measures that will pave the way for regional economic revitaliza-

is working to solve regional issues, including supporting various

Prefecture. To encourage residents of the Tokyo metropolitantion and promote regional development.

measures aimed at addressing the problem of unoccupied houses

area to move to and live in Yamanashi Prefecture, the Bank has

in Koshu City.

set up “Move-to-Yamanashi Desks” in its branches in Tokyo and

In addition, the Bank has concluded the “Partnership Agreement• Achievements in support for management improvement

Moreover, as an initiative extending beyond the prefectural bor-

(April 2019 to March 2020)

Debtors (excluding normal borrowers) as of the start of theterm: A

1,683

Of which, those receiving management improvement
support: a108

Coordinator at the University of Yamanashi. Moreover, in• Encouraging people to move to and live in
Yamanashi Prefecture

central Tokyo.

and cooperation with the Platform of University Intellectual

Kanagawa Prefecture. Each Branch Manager has been entrusted

der, the Bank concluded the Partnership Agreement on Promoting

by Yamanashi Prefecture to serve as a “Move-to-Yamanashi

Tourism in the Fuji-Hakone-Izu Region with The Bank of Yokohama,

Advisor.” In this role, the Branch Managers provide information on

Ltd. and The Shizuoka Bank, Ltd. Under this agreement, the Bank has

Yamanashi Prefecture, along with fielding the inquiries of people

conducted regional economic revitalization activities encompassing

interested in relocating to Yamanashi Prefecture and forwardingthese inquiries to the Yamanashi Living Support Center.

Of which, those that upgraded their debtor categories asof the term-end: b

6

an expansive area. One activity was concluding partnership agree-

Of which, those drawing up reconstruction plans: c82

and The Shizuoka Bank, Ltd. following the extension of the Chubu

attractiveness of Yamanashi Prefecture. The Bank distributes

Percentage receiving management improvement support: (a/A)

6.4%

Odan Expressway.

promotional videos on municipalities in Yamanashi Prefecture via

Percentage upgraded: (b/a)

5.6%

Percentage drawing up reconstruction plans: (c/a)

75.9%

ments with Central Nippon Expressway Company Limited (NEXCO)

Moreover, the Bank is helping to spread the word about theIn addition, the Bank was selected as a partner in the Ministry ofa content distribution system installed in branches in Tokyo and• University of Yamanashi Guest Social
Collaboration Coordinators

Land, Infrastructure, Transport and Tourism’s PPP agreement, estab-

Kanagawa Prefecture. We have also installed special document

The Bank is working to revitalize the regional economy by creating

lished the Yamanashi PPP/PFI Regional Platform with Yamanashi

stands to hold promotional leaflets on municipalities in Yamanashi

and finding promising projects through industry-academia

Prefecture, and is supporting town development and efficient

Prefecture. Additionally, the Bank offers Municipality Partnershipcollaboration. To this end, the Bank takes steps such as matching

administrative and fiscal management through private-public

Housing Loan products for 19 municipalities. These loans are linked

the technology seeds held by universities with the needs

partnerships.

to subsidies established by municipalities toof companies.

encourage inbound migration, with the aim

As of March 31, 2020, the University of Yamanashi had appointed

of developing an environment to welcome

111 Bank employees as “University of Yamanashi Guest Social

more people seeking to move to and live inCollaboration Coordinators.” In this role, these employees serve as

Yamanashi Prefecture.

liaisons between industry and academia.

Going forward, the Bank will continue to
implement measures in cooperation with
the initiatives of municipalities, with theaim of encouraging more people to moveto and live in Yamanashi
Prefecture.

THE YAMANASHI CHUO BANK 202018

THE YAMANASHI CHUO BANK 2020

19

Initiatives to Create Common Values

Initiatives to Create Common Values

2. Increase Productivity through BPI

Initiatives towards customerfirst management

Consulting sales for individual customers• Providing easy-to-understand explanations
to customers

the Bank is enhancing its products and services, and is working tochanges by dramatically improving the productivity of overall banking operations through operational reforms andprovide more convenience to customers.

other measures.

In order to respond to the diverse needs of customers in the region,

The Bank will continue to build a foundation for a next-generation business model in response to environmental

We have started making portfolio proposals in order to provide
easy-to-understand explanations to customers about asset allocation• Consulting lineup for seniors

and the degree of risk/return of the financial products we manage.

The Bank has developed a product lineup responding to the

BPI in branch operations

BPI in operations witha common platform

BPI in Head Office operations

particular needs of seniors and their families.

When making proposals to customers and following up with

In addition to the senior-minding service and reverse mortgages,

them after sales, we are promoting the use of this tool that has
excellent visibility as well as holding asset management seminars

in September 2019 we introduced guardian support deposits andand investment briefings as needed.

in February 2020 we introduced inheritance trusts and annual gift
trusts, thereby putting in place a framework capable of answering a• Initiatives to develop personnel

wider range of needs than before.

The Bank limits personnel who sell financial products to those who
Asset management and inheritancesure that they are able to properly respond to customers’ wishes. In
addition to personnel development through such a sales qualification system, in order to provide high-quality consulting proposals
based on broad financial knowledge, we are promoting certification
as a Certified Skilled Professional of Financial Planning (FP), a nationalLife insurance (whole life insurance, etc.)

qualification, among our sales personnel.
Secure, fulfilling living• Customer-based consulting

Assetbuilding

Investment trust
accumulationiDeCo

Investment trusts

Asset succession

Life insurance
Assetmanage- Foreign currency
deposits
ment

Testamentary
trusts

Bonds

Inheritance

Onset of Seniors who require an adult guardian systemdementia

Seniors with mental capacity

have passed the Bank’s internal qualification examination to makeStarted offering in September 2019
Guardian support deposits

Trust agency services
Started offering in February 2020
Inheritance trusts
Started offering in February 2020
Annual gift trusts

Started offering in December 2019
Cosmos Institute of General Adult GuardianshipSupport Center
Offers a consulting function in partnership with
the Yamanashi Prefecture branches

Seniors with mental capacity
Dementia insurance
Reverse mortgages

Increase customer convenience

Strengthen sales structure throughredeployment of human resources

Increase labor productivity

BPI in branch operations• Began Head Office-concentrated registrations of financial data

Rationalize and increase efficiency ofreception operations• Rationalized ledger binding clerical work (insert and seal inutilizing the TKC monitoring information service
dedicated package)• Preparation services for transaction slips featuring
QR codesBPI in Head Office operations

We started a service that generates tickets with QR codes in

Streamline organization and operations

Inheritance trusts

September 2019. When a customer enters the type of activity

Annual gift trusts(deposit/withdrawal), account name, account number, amount,• Automate operations using RPA

and description on the Yamanashi Chuo Bank website, a slip (PDF)

By March 2020, we had developed an RPA robot for 15 tasks,

with a QR code is generated. If the customer prints out the slip,

centered on data aggregation and data entry tasks, and reduced

affixes their notification stamp in case of withdrawal, and brings it

working hours by 2,440 hours per year.

We work closely with our customers according to their stage inlife and propose appropriate solutions for both their potential andexplicit needs. Through these efforts, the number of policyholders

to a branch, they are able to conduct their transaction

and investment trust holders of accumulation-type products, such

• Reassignment of human resources

more smoothly.

as investment trust accumulations and level premium insurance,

By reorganizing the Head Office and consolidating overlapping

is increasing year by year, especially for customers in their asset-

departments, we reassigned 69 Head Office employees to other• Expansion of functions of the in-branch-only tablet“Smile One”

building years.

areas by March 2020, as we worked to bolster the sales framework.

In order to further enhance convenience for customers and

BPI in operations with acommon platform

improve administrative efficiency, we started accepting applications for personal loans using “Smile One” tablets, which areavailable only in branches.

Systemize and adopt paperless operations• Expanded paperless operations through digitalization, such as for

Rationalize and increase efficiency of back-office
operations, etc.

regulations for various types of deposits, etc.
• Made ledgers, etc. paperless by changing administrative methods

By rationalizing and increasing the efficiency of back-office

for restructured loans, etc.

operations at branches, we are striving on a daily basis to establish• Adopted paperless processing for stored documents concerninga system capable of handling applications and consultations frombranch screening of individual loans

customers. In fiscal 2019, we addressed the following operations.

• Expanded paperless operations through digitalization of various• Centralized parts of real estate collateral documentation

types of internal documents by using groupware

preparation for business loans at the Head Office
THE YAMANASHI CHUO BANK 2020

20

THE YAMANASHI CHUO BANK 202021

Initiatives to Improve Personnel Vitality
1. Personnel Management to Promote Vitality in Individual Employees

Risk Appetite Framework (RAF) initiatives

We aim to create a highly motivated organization where individual employees experience fulfillment and pride by fully
utilizing their strengths and where everyone can play a role.

Employees

Selfimprovement

OJT
seminars

al growth
ent and person

lfillmA sense of fu

Assignment
to outsideorganizations

Increase the Sophistication of the Management andAdministration Approach

Becomean organization where
diverse personnel
shine

To this end, the Bank has built a stronger internal control systemand organizational structure, along with working to enhance cor-

The business environment for regional financial institutions is

porate governance, notably by maintaining high ethical standards

becoming increasingly challenging due to factors such as theamong all management and staff members, and ensuring thedeclining birthrate and aging population and the prolonged nega-

active disclosure of corporate activities.

tive interest rate policy. As such, building a sustainable businessmodel has become an urgent task for the Bank. In order to build a

Details of the Bank’s organizations

sustainable business model, a Risk Appetite Framework (RAF) that

The Bank has adopted a corporate governance system based

optimizes the balance between profits and risk, and comprehen-on the “Company with Board of Auditors” model. The Board ofsively and integrally manages the avoidance of risks that have a

Directors determines management policies and other importantsignificant impact on management, is considered useful.

matters, along with supervising the business execution of the

At the Bank, we have been working to strengthen the profit

Directors. The Bank takes steps to strengthen the Board of Directors’

and risk management system utilizing an RAF as a part of thesupervision of management. For example, the Bank has appointed

Initiatives to reform theorganizational culture

Initiatives to support balancing work andhome life• Implemented business casual wear
business casual dress code throughout• Regularly held information exchange meetings withthe aim of supporting the return to work of people on
child-rearing leave

the Group to allow employees to work

We regularly held information exchange meetings for employees

more comfortably and to foster a free-

on child-rearing leave with the aim of alleviating their concerns

Guided by its social responsibility as a banking institution and its

spirited corporate culture.

about returning to work and enabling a smooth return to work.

team (managing directors and above) and the nomination andpublic service mission in that role, the Yamanashi Chuo Bank aims

remuneration of directors, as well as related matters.

Starting in May 2020, we introduced a+“Value 2020” medium-term management plan. We establishedthree Outside Directors to participate in meetings of the Board of

a project team to build the RAF, and have been deliberating overDirectors, both of whom are independent of business execution.
Moreover, the Bank has set up a Nomination and Remuneration

the formulation of a risk appetite policy at the ALM Committee andAdvisory Committee as an advisory body to the Board of Directors.

other meetings.

This committee was formed to ensure further impartiality, transpar-

Corporate governanceency and objectivity in the decision-making process pertaining to
the appointment and dismissal of members of the management

to secure the trust of various stakeholders, including customers,• Employee (eNPS) questionnaire surveys

The Board of Corporate Auditors determines audit policies, audit

shareholders, staff members and the community it serves, by such

As a part of reforming the organizational culture, we are conduct-plans, audit methods and related matters, along with auditing

means as maintaining the Group’s sound management and assur-

ing employee questionnaire surveys to measure employee loyalty

the business execution of the Directors from an independent

ing transparency of management, in conjunction with contributing(eNPS) and to create a work environment where diversity can be

standpoint from the Board of Directors.

to the prosperity of the regional community and the development

taken advantage of.

of its economy.

The Bank also has a Board of Managing Directors, Compliance
Committee and Risk Management Committee. The Board ofManaging Directors discusses and passes resolutions on importantmatters pertaining to the Bank’s overall business management andStructure of the internal control system

2. Develop Specialist Human Resources (Professionals)
We have created an internal human resource development system in which each employee can achieve a real sense of
growth and we can develop specialists (professionals) in the consulting field which is becoming increasingly diverse andsophisticated.

Corporate Auditors

and know-how of various industries, over the five years from fiscal• Introduction of “Y-Support” individual guidance
training

nies, centered on local industries.

As a measure for developing young employees and strengthening

experience gained by employees who have returned to the com-the OJT function, from fiscal 2020 we have changed our trainingpany following the completion of an outside work assignment,

method from the conventional “mass group” training to “individual

we assign such employees to work in a Head Office department

guidance” training with small numbers of participants.

that supports client companies and regional revitalization, or inmeasures to develop and establish a compliance system. The Risk

Independent
Auditors

Non-Standing
Directors

Assign employees to work at outsidecompanies and organizations

ChairmanManagement Committee seeks to conduct effective and agile risk

President

management in response to changes in the business environment.

Deputy President

Additionally, with the aim of enhancing corporate governance,

Senior Managing Director

the Bank has established an Executive Officer System in order toManaging Directors

separate the management decision-making function and the

Office of Corporate
Auditors

In order to make full use of the specialized knowledge andbranches where they can make use of their experience.

Committee discusses and monitors the implementation ofBoard of Directors

judgments about companies based on having learned the nuances
2012 we assigned 50 employees to do work stints at other compa-

policies approved by the Board of Directors. The Compliance

Board of Corporate Auditors
Standing Corporate Auditors

Support the development of young
employees and bolster the OJT systembusiness execution in accordance with the basic management

General Meeting of Shareholders

business execution function.

Board of Managing
Directors

To provide a comprehensive range of financial functions, theBank has four Group companies engaged in business activities

Directors

such as credit guarantees, leasing, credit cards and consulting
services. These companies are managed in an integrated manner
Advise and report

Auditing Division

Nomination andRemuneration Advisory
Committee

as part of the Yamanashi Chuo Bank Group.

Compliance Committee
Risk Management
Committee

Head Office Divisions• Assigning employees to work at other companies, etc.

All Branches

With the aim of improving our employees’ ability to make good
THE YAMANASHI CHUO BANK 2020

22

Group Companies

THE YAMANASHI CHUO BANK 202023

Increase the Sophistication of the Management and Administration Approach

Risk management

The risks the Bank faces are broadly grouped into risk categories
such as credit risk, market risk, liquidity risk and operational risk,

Increase the Sophistication of the Management and Administration Approach

Basic policy on the prevention of money
laundering and terrorist financing

5. Management of correspondent banks
The Group will strive to gather information on correspondentbanks, appropriately evaluate such information, and implement

The operating environment for the financial situation has been chang-and managed accordingly. Based on integrated risk monitoring

ing, and banks consequently face increasingly diverse and complex risks.

and analysis, the Bank’s ALM Committee and Risk Management

The Group sees the prevention of money laundering and terrorist

mitigation measures in line with the risk. In cases where the corre-

To secure a steady earnings stream into the future, it is therefore

Committee assess the possible impact of those risks on the Bank’s

financing (hereinafter, “ML/TF”) as a top management priority.

spondent bank is a shell bank, or if the Group has permitted a shell

operations and work out countermeasures.

Accordingly, the Group has developed and established an effective

bank to use an account, the Group will not conclude or maintain aessential for the Bank to accurately monitor and measure the

The Bank allocates capital to ensure sound banking operations

various risks involved in the conduct of its banking operations, andand the effective use of capital.

then to continuously manage those risks.

correspondent agreement with such a shell bank.

management framework, and is implementing measures to prevent

6. Education and training

ML/TF as follows:

The Group will continuously provide the necessary and appropri-

1. Compliance with relevant laws, regulations and other rules

Compliance – Protecting customers

The Group will comply with all applicable laws and regulations,ate training and other educational activities to all executives andpolicies and other rules concerning the prevention of ML/TF.

employees according to their roles, thereby enhancing their abilities and deepening understanding of measures to prevent ML/TF

2. Development of systems• Compliance – Initiatives to protect customers
With regard to compliance, we believe that our duty is not solely to abide by the law, but also to ensure the strict observance of a wide rangeof social rules, including social norms and business ethics, to meet the demands and expectations of the broader community as a corporate
citizen. In other words, compliance entails adapting adroitly to changes in society as we strive to ensure the protection of customer rights and theenhancement of convenience.
The Bank has positioned compliance as one of its top management priorities. In order to maintain and further solidify our relationship of trust with customers, we are working to establish and bolster our compliance framework, centered on the Compliance
Committee. In addition, the Bank has appointed a Compliance Officer in each Head Office department and in all branches. Compliance
Officers advance compliance initiatives in their respective workplaces.
Specifically, we formulate a Compliance Program each fiscal year which serves as an action plan for achieving compliance. The
Compliance Program details specific measures for compliance with laws and regulations, as well as compliance training plans andother content, and each Head Office department and branch works together to execute the program.
We have also created a Compliance Manual that serves as a handbook for realizing compliance.
The Compliance Manual explains the spirit of Our Mission, which is “Region-based operations and sound management,” as well as
the Nine Principles of Compliance based on corporate ethics and social norms, along with explaining finance-related laws and regula-

The Group will clearly define the roles and responsibilities ofacross the entire organization. Concurrently, the Group as a wholemanagers and staff members involved in Anti-Money Laundering/

will foster a corporate culture that resolutely counters ML/TF.
7. Internal audit

Counter Financing of Terrorism (hereinafter, “AML/CFT”). Integrated
management of AML/CFT will be carried out under appropriate

The independent Auditing Division will conduct regular audits ofcooperation among all the relevant departments.

the framework to prevent ML/TF. Based on the audit results, theGroup will strive to further enhance this framework.

3. Risk-based approach
In accordance with the risk-based approach, the Group will
identify and evaluate in a timely and accurate manner the ML/TF
risks it faces, and implement mitigation measures commensuratewith those risks.
4. Suspicious transaction reports
The Group will develop a framework for swiftly reporting to theregulatory agencies any suspicious transactions it detects in thecourse of its operations.

tions, among other topics. This Compliance Manual highlights the importance of compliance.
In response to societal demands, the Bank has included organized crime group exclusion clauses in various agreements and transaction provisions in order to further strengthen our efforts to block relationships with anti-social forces such as organized crime groups.
Going forward, the Bank will continue to further strengthen the compliance framework.

Nine Principles of Compliance (Business Ethics)

1

Fulfill the public mission of banks

2

Provide high-quality financial services

3

Strict compliance with laws and regulations and other rules

4Society and communication

5

Respect for human rights

6

Workstyle reforms, enhancement of theworkplace environment for management and employees

7

Activities to tackle environmental
problems

8

Contribute to social inclusion anddevelopment

9

Take steps to mitigate threats such as severing
any ties with anti-social forces and countering
terrorist financing

THE YAMANASHI CHUO BANK 202024

THE YAMANASHI CHUO BANK 202025

Strengthen CSR Based on the SDGs and ESG Principles
1. Activities to Tackle Environmental Problems

Formulation of Environmental Policy

Strengthen activities to reduce the Bank’s
own environmental impact

As environmental problems such as global warming become more
important for us to proactively address environmental problems and• Preservation and rehabilitation projects insocioecological landscapes (satochi-satoyama areas)

contribute to the creation of a sustainable local society.

The Group has been promoting the preservation of socioecologicalserious, as a company rooted in the region, we believe that it isUnder our Environmental Policy, the Bank will promote environ-landscapes (satochi-satoyama areas), which are natural habitats

mental conservation activities more proactively and continuously

where human activities are undertaken in harmony with nature,than ever before.

since August 2011. To pass on these landscapes to future generations, the Bank has named a plot of abandoned farmland in Chuo

Yamanashi Chuo Bank Environmental Policy

City, Yamanashi Prefecture as “Yamanashi Chuo Bank Fureai-no-

The Yamanashi Chuo Bank is a regional bank that operates

Satoyama.” The Bank is working to rehabilitate the land and growprincipally in a region blessed with one of Japan’s most pictur-

various vegetables on the site with the advice of local farmers andesque and bountiful natural environments. As such, the Bank

forestry cooperative members. In addition, the Bank is tending tois strongly committed to protecting the global environment.

an abandoned forest next to the site by conducting tree-planting

The Bank believes that activities to tackle environmental prob-

activities. To date, the Bank has organized and held 44 activities withlems are the foundation of its corporate social responsibilities

the participation of a total of 3,038 people comprising executives,(CSR). The Bank complies with environmental laws and regula-

employees, and their family members.

Strengthen CSR Based on the SDGs and ESG Principles• Participation in the Yamanashi Clean Campaign and
Eco-Drive Movement• Use of Yamanashi Prefecture lumber

The Group participates in the Yamanashi Clean Campaign and Eco-

Yamanashi Prefecture wood in all parts of the branch. Using lumber

Drive Movement, which are environmental beautification programs

helps prevent global warming because the carbon dioxide absorbed

led by Yamanashi Prefecture. The entire Bank is working as one toby the forest remains stored as carbon in the wood for a long period

conduct environmental beautification and preservation activities.

of time. In addition, periodic thinning and other forest maintenanceFor example, we are conducting cleanup activities of public facilities

activities are being promoted even more than before, which willsuch as roads and parks around our branches, and implementing

help revitalize Yamanashi Prefecture’s forestry industry as well as

environmentally friendly driving practices. In the 2019 Yamanashi

ensure lush green forests.

The Mejirodai Branch was rebuilt in September 2019 using local

Clean Campaign, we conducted cleanup activities in 577 locations
with the participation of 2,963 people. The Eco-Drive Movement
involved the participation of 2,367 employees and 529 Bank-owned
vehicles.

tions, along with accurately monitoring the impact of its
business activities on the environment. Concurrently, the Bank
works to actively and continuously implement environmental• Installation of solar power generation systems

protection activities.

As part of its measures to reduce the amount of CO2 emissions,
the Bank has installed solar power generation systems at its Asumi

1. The Bank will strive to reduce environmental impact by

Branch, Ogasahara Branch, and Showa Branch.

promoting the conservation of resources and energy, with aview to harmonizing its business activities with the environ-• Using the eco-friendly material LIMEX in business cards

ment as a financial institution.

Starting from April 1, 2020, the Group has been gradually switching

Moreover, the Bank has equipped the parking lot of the Saruhashi
Branch with lights that run on solar and wind power.

from using paper to using the eco-friendly material LIMEX* for some

2. The Bank will strive to help improve the regional community environment through the supply of financial products,• Participation in cleanup activities on Mt. Fuji

services, information and so forth.

Under the slogan of “World Heritage Site: Leaving a Beautiful Mt. Fuji

3. Every executive and employee will increase theirto Future Generations,” the Group has been working to protect andunderstanding of environmental problems, and actively

preserve the value of Mt. Fuji, along with promoting tourism andimplement environmental protection activities in therelated priorities. In August 2019, the first term of the cleanup cam-regional community.

paign for Mt. Fuji, an event organized by the Mt. Fuji Beautification
Foundation, was held. The Bank was represented in the event by 184
of its executives and employees, as well as their family members,
who took part in the cleanup of areas around the Fifth Station of
Mt. Fuji and Narusawa. Looking ahead, we will continue to actively
conduct environmental protection and preservation activities for Mt.
Fuji, which was registered as a World Heritage Site.

of the business cards used by executives and employees.
LIMEX business cards are said to protect approximately 10 liters ofwater per 100 business cards, and contribute to Goal 6 Clean Waterand Sanitation of the SDGs.
* LIMEX is a material developed and manufactured by TBM Co., Ltd. andis made mainly from limestone. Using LIMEX conserves forest resources
because paper pulp is not used, and water resources are also protected
because large amounts of water are not needed in the manufacturing
process.

• Deployment of fuel-cell vehicles
In order to help prevent global warming, we are actively deploying
hybrid vehicles and other fuel-efficient vehicles into our fleet of business vehicles. We have also deployed two MIRAI fuel-cell vehicles(FCV). The MIRAI FCV has been lauded as the “ultimate eco car”
because it does not emit any carbon dioxide or exhaust emissions
when it is driven.

THE YAMANASHI CHUO BANK 202026

THE YAMANASHI CHUO BANK 202027

Strengthen CSR Based on the SDGs and ESG Principles

2. Activities to Contribute to the Regional Community

Strengthen CSR Based on the SDGs and ESG Principles

Initiatives to create barrier-free facilities

As a corporate citizen, the Bank will enhance its activities to contribute to the regional community in various fields suchas support for education and the promotion of culture, arts, sports, and welfare, and implement these activities on alasting, long-term basis. In the process, the Bank will contribute to the development of the regional community.

• Installation of voice guidance system
We have installed a system that responds to communication devices• Installation of handset-equipped ATMs at all branches

carried by people with visual impairments and provides voice

The Bank has installed handset-equipped (receiver-type) ATMs at its

guidance. These devices are available in the Shimoiida Branch, Kofu

Head Office and all branches so that visually impaired and elderly

Station Branch (CELEO KOFU), as well as the Kofueki Kitaguchi.

customers can use ATMs without difficulty.

Local contribution activities in a variety
of fields

the “Sawayaka Kids’ Volleyball• Holding Yamanashi Chuo Bank lectures

Cup Volleyball Tournament

We try to provide high-quality information to people in the region,

for Mothers in Yamanashi

and one way we do this is by holding lectures on current topics.

Prefecture.

This system is the first of its kind to be installed by a financial
institution headquartered in Yamanashi Prefecture.

Workshop.” The Bank also holds
the Yamanashi Chuo Bank

In addition, in order to help people better understand the Bank,
president takes a few minutes• Acquisition of naming rights for Kose Sports Park’s
athletics stadium

to explain the Bank’s financial

In order to help promote sports and the health of prefecture• Transaction statements issued in brailleresults and future management

residents, support the further success of the Ventforet Kofu soccer

The Bank issues statements concerning customers’ deposit transac-

strategies and policies.

team, and contribute to the development of the local area, the Bank

tions (ordinary deposits, current accounts, etc.) in braille for those

has renewed its naming rights agreement for Yamanashi Chuo Bank

who require it.

prior to lectures the Bank• Yamanashi Chuo Bank Financial Museum

Stadium, extending the agreement until 2021.

• Installation of desktop-type conversation support
equipment
In addition, the Bank has introduced devices that make it easierfor customers with hearing impairments and elderly customers to

When sending such statements by mail, we affix stickers withThe Yamanashi Chuo Bank Financial Museum presents many

braille for the customer’s name and for “Yamanashi Chuo Bank” ondifferent aspects of the histories of currency and finance in Japan.

the envelope.

communicate smoothly with branch staff. These devices work by
converting the branch staffer’s voice into a form that is easier for

The museum has permanent displays of approximately 2,000 articles

listeners to hear. These devices are available at the Head Office andof currency, highlighted by its collection of Koshu-kin gold coins,certain other branches.

and Japan’s first passbook. It also holds planned exhibits and otherevents as appropriate. The museum also hosts off-campus learning
programs for elementary school, junior high school and other students, and dispatches instructors to schools for special workshops.
The museum is made available to members of the community as a• Lobby exhibits

lifelong learning facility.

The Head Office lobby and the lobbies of branches are used as spots
for local residents to engage in cultural activities and for showcasing
their works of art.

• Activities to provide financial education
The Bank conducts activities such as hosting workplace experience
activities, conducting special workshops, and offering financial
courses at universities in Yamanashi Prefecture. Moreover, the Bank

• Barrier-free branches

In November 2019, the “My Pride Exhibition 2019 – 12th

The Bank is working to develop branches with barrier-free features in

Yamanashi Prefectural High Schools Student Art Exhibition” wasfacilities and buildings to ensure that all customers, including those

held at 40 of the Bank’swith physical disabilities and elderly customers, are able to reliably

branches. The exhibits

and safely use our branches. Examples include the installation offeatured paintings andpriority parking spaces for people with disabilities and access ramps

calligraphy produced by

to branch entrances.

• Customer assistance system
The Bank offers a system for customers with physical disabilities tomake reservations to visit branches ahead of time to ensure that
their visit proceeds smoothly.
Prior to the customer’s visit, a representative from the branch willcall the customer and inform them about the necessary documents

students from 19 highholds the Economics Koshien Yamanashi Tournament for seniorand how the procedures will be handled, thereby ensuring that theschools in Yamanashi

high school

branch visit is smooth and successful.

Prefecture.

students (Theevent has so far• Assignment of Service Care Attendants• Participation in local events

been held nine

The Bank has been encouraging personnel to obtain the Service

In order to deepen connec-

times.).

Care Attendant certification. This certification is granted by the Japan

tions with local residents,

Consulting Institute to personnel that have demonstrated their

we actively participate in• Activities to promote sports

ability to provide universal services that are considerate and mindfuland support local festivals

The Bank has a women’s volleyball team that has delivered a first-of the needs of all customers, including customers with physicaland events held with therate performance on the national stage since it was formed. In orderdisabilities and elderly customers. The Bank is working to place

aim of revitalizing theto popularize volleyball and improve volleyball skills in Yamanashi

personnel who have obtained this certification in all branches.

region.

Prefecture, the Bank holds the “Fureai Volleyball Workshop” andTHE YAMANASHI CHUO BANK 202028

THE YAMANASHI CHUO BANK 202029

Financial Review(on a consolidated basis)

Overview of Financial Position

Cash flows from investing activities

The Bank’s financial position as of March 31, 2020 was as follows. Deposits
stood at ¥2,976.5 billion as of March 31, 2020, up ¥53.6 billion from a year
earlier due to increases in individual and corporate deposits. Total deposits,
including negotiable certificates of deposit (NCDs), rose ¥48.5 billion froma year ago to ¥3,033.4 billion as of the fiscal year-end. Loans and bills
discounted increased by ¥97.3 billion from a year earlier to ¥1,801.5 billion
as of the fiscal year-end. This increase was mainly due to increases in loans
to small and medium-sized enterprises and loans to individuals. Securities
stood at ¥1,223.5 billion as of the fiscal year-end, up ¥87.8 billion from a year
ago. This increase was due to the increase in municipal and corporate bonds,
despite the decline in Japanese government bonds and stocks.

Net cash used in investing activities totaled ¥134.1 billion (compared with a
net inflow of ¥124.5 billion in the previous year). The main source of cash wasproceeds from sales and redemption of investment securities totaling ¥244.4
billion, which was offset by purchases of investment securities of ¥366.5
billion and an increase in money held in trust of ¥10.0 billion.

【Consolidated Financial Statements】】①【Consolidated Balance Sheets】】
Millions of Yen

Net cash used in financing activities was ¥2.2 billion (compared with a net
outflow of ¥1.6 billion in the previous year). Cash was used mainly for repurchases of treasury stock of ¥1.1 billion and dividends paid of ¥1.1 billion.
As a result, cash and cash equivalents at the end of the fiscal year came to¥357.1 billion (down ¥159.8 billion from the previous year).

Overview of Operating Results
In terms of operating results for the fiscal year ended March 31, 2020, interest
income (the balance of interest income and expenses) declined by ¥303
million year on year, mainly reflecting a decrease in interest and dividends
on securities due to the impact of the Bank of Japan’s negative interest rate
policy. Fees and commissions (the balance of fee and commission income andexpenses) increased by ¥290 million year on year, mainly due to an increase incommission revenue related to deposit and lending operations. Other operating income (the balance of other operating income and expenses) declinedby ¥3,445 million year on year, mainly reflecting a decrease in Japanese
government bonds and other bond transactions. Credit-related expenses
increased by ¥576 million year on year. Equity share and similar transactions
increased by ¥1,279 million year on year. Loss on dissolution of investment
trusts decreased by ¥1,196 million year on year. As a result, ordinary profit
decreased by ¥731 million year on year to ¥6,726 million.
Extraordinary losses decreased by ¥412 million year on year, mainlyreflecting an increase in impairment losses. Total income taxes rose by ¥32
million year on year. As a result of the above, profit attributable to shareholders of the parent was down by ¥1,143 million year on year to ¥3,764 million.

Analysis and Discussion of Operating Results
The Bank’s financial position as of March 31, 2020 was as follows. Total
deposits including negotiable certificates of deposit (NCDs) increased by¥48.5 billion from a year earlier, and loans and bills discounted increasedby ¥97.3 billion from a year earlier, as both performed favorably. Securities
increased by ¥87.8 billion during the fiscal year, due to the purchases ofmunicipal bonds and corporate bonds.
The Bank of Japan’s negative interest rate policy will keep the current
low-interest rate environment unchanged. Under these conditions, the Bank
will work to improve the yield on loans and increase the loan balance byconducting problem-solving-oriented consulting sales and helping customers to improve their businesses.
The Bank will also strive to deepen and expand consulting fields. Throughthese efforts, the Bank will seek not only to increase interest on loans, butalso to increase non-interest revenue (revenues from fees and commissions).
Looking at investments in securities, the Bank faces a challenging investment environment. In response, the Bank will work to raise the sophisticationof its investments while conducting appropriate risk management, with theaim of boosting investment returns.
The Bank will redouble its efforts to reduce expenses through measures toenhance productivity.

Cash Flows
Cash flows from operating activities
Net cash used in operating activities amounted to ¥23.3 billion (comparedwith net inflow of ¥82.7 billion in the previous year). The main contributing
factors were a net increase in deposits of ¥48.5 billion and a net increase inpayables under securities lending transactions of ¥22.0 billion, which wereoffset by a net increase in loans and bills discounted of ¥97.3 billion.

Cash and due from banks¥ 517,074¥ 357,267$ 3,282,801

Call loans and bills bought

4,529

2,818

25,900

Monetary claims bought

13,486

12,274

112,782–

9,991

91,805

1,135,617

1,223,516

11,242,453

1,704,259

1,801,580

16,554,076

Foreign exchanges *6

4,042

2,862

26,300

Other assets *7, *8

74,75975,844

696,910

Tangible fixed assets *10, *11

24,17623,367214,715

Buildings

8,542

8,376

76,973

Land

12,755

12,049110,715

Construction in progress

293

468

4,307

Other tangible fixed assets

2,585

2,472

22,720

2,981

3,191

29,321

1,903

2,324

21,357

Software in progress

747

578

5,316

Other intangible fixed assets

331

288

2,647

Net defined benefit asset

3,021

2,400

22,056

Deferred tax assets

1,651

2,144

19,707

Customers’ liabilities for acceptances and guarantees

5,862

5,577

51,252(10,654)(11,422)(104,958)¥3,480,808¥3,511,412$32,265,118

Money held in trust
Securities *1, *7, *12Loans and bills discounted*2, *3, *4, *5, *6, *9

Software

OHR

Capital adequacy ratio(Domestic standard)

(%)

(%)

0.8

20.0

(%)

80.0

15.0

0.6

75.0

Allowance for possible loan losses
Total assets

0.4

10.0

70.0

0.2

5.0

65.0

0.0

0.0
March 31

2016

2017

2018

2019

2020

March 31

60.0

2016

2017

2018

2019

2020

March 31

2016

2017

2018

2019

2020

ROA = Core net business profit / (Average balance of total assets – Average balance of customers’ liabilities for acceptances & guarantees)
Capital adequacy ratio = Domestic standard (on a consolidated basis) OHR = Operating expenses / Core gross business profit
Note: A ll except for the capital adequacy ratio are on a non-consolidated basis.
THE YAMANASHI CHUO BANK 202030

End of FY2019(March 31, 2020)

Assets:Intangible fixed assets

ROA

End of FY2019(March 31, 2020)

End of FY2018(March 31, 2019)

Cash flow from financing activities

Thousands of U.S. Dollars

THE YAMANASHI CHUO BANK 202031Millions of Yen

Thousands of U.S. Dollars

End of FY2019(March 31, 2020)

End of FY2018(March 31, 2019)

End of FY2019(March 31, 2020)②【Consolidated Statements of Income and Consolidated Statements of Comprehensive Income】】【Consolidated Statements of Income】】
Millions of Yen

Thousands of U.S. Dollars

FY2018(From April 1, 2018
to March 31, 2019)

FY2019(From April 1, 2019
to March 31, 2020)

Ordinary income:¥52,353¥47,301$434,640Interest and dividends income

30,58730,294

278,362Interest on loans and bills discounted

15,851

15,825

145,415Interest and dividends on securities

14,485

14,230130,761Interest on call loans and bills bought

91

57

532

Interest on due from banks

73

72

666

Other

86

107

987

Fees and commissions

8,383

8,718

80,110

Other operating income

9,219

5,681

52,201Other ordinary income

4,163

2,608

23,967

4,163

2,608

23,967

Liabilities:

FY2019(From April 1, 2019
to March 31, 2020)¥2,922,898¥2,976,587$27,350,802

Negotiable certificates of deposit

62,09656,907522,902

Payables under securities lending transactions *7

13,34435,349324,816

Borrowed money *7, *8

222,065

207,485

1,906,509

937

631

5,801

Other liabilities

17,166

24,902

228,816

Provision for bonuses

1,256

1,051

9,664

Accrued bonuses to directors and corporate auditors

44

33

310

Net defined benefit liability

236

–

–

Reserve for directors’ and corporate auditors’
retirement benefits

11

10

96

Reserve for reimbursement of deposits

230

291

2,678

Reserve for contingent losses

128

146

1,343

Ordinary expenses:

44,89540,574

372,829

Deferred tax liabilities

12,141

2,775

25,506

Interest expenses

794

805

7,398

Acceptances and guarantees

5,862

5,577

51,252

Deposits

381

376

3,460

3,258,419

3,311,750

30,430,496

Negotiable certificates of deposit

11

10

99

Call money and bills sold

0

(10)

(97)

Payables under securities lending transactions

350

384

3,537

Deposits *7

Foreign exchanges

Total liabilities

Net assets:

Other *1

Common stock

15,40015,400141,505

Borrowed money

51

41

377

Capital surplus

8,287

8,398

77,175

Other

(0)

2

22

Retained earnings

164,099

165,000

1,516,129

Fees and commissions

2,384

2,428

22,318Treasury stock(2,006)(1,347)(12,380)

Other operating expenses

4,253

4,160

38,229Total shareholders’ equity

185,780

187,451

1,722,429

General and administrative expenses *2

28,23527,144249,421

Unrealized gains on available-for-sale securities

36,906

13,912

127,835

Other expenses

9,227

6,036

55,463

–

(26)

(244)

324

902

8,293

Remeasurements of defined benefit plans(3,031)(4,393)(40,372)

8,903

5,133

47,170Total accumulated other comprehensive income

33,874

9,492

87,219

7,458

6,726

61,812

174

147

1,351

2,559

2,570

23,624

222,388

199,661

1,834,622¥3,480,808¥3,511,412$32,265,118

Deferred gains or losses on hedges

Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

THE YAMANASHI CHUO BANK 2020

32

Provision of allowance for possible loan losses
Other expenses *3
Ordinary profit

THE YAMANASHI CHUO BANK 202033

Millions of Yen

Thousands of U.S. Dollars

FY2019(From April 1, 2019
to March 31, 2020)

FY2018(From April 1, 2018
to March 31, 2019)【Consolidated Statements of Comprehensive Income】】

FY2019(From April 1, 2019
to March 31, 2020)

Millions of Yen
FY2018(From April 1, 2018
to March 31, 2019)

Thousands of U.S. Dollars

FY2019(From April 1, 2019
to March 31, 2020)

FY2019(From April 1, 2019
to March 31, 2020)

–

270

2,488

–

270

2,488

Profit¥5,114¥3,937$36,180

228

912

8,383

Other comprehensive income *1

1,626(24,349)(223,742)

83

574

5,277

1,757

(22,961)(210,983)

145

338

3,106

－

(26)

(244)

7,229

6,085

55,916(131)(1,362)(12,515)

Income taxes – current

834

1,447

13,297¥6,740¥(20,412)$(187,562)

Income taxes – deferred

1,280

700

6,439

Total income taxes

2,115

2,147

19,736¥6,594¥(20,617)$(189,450)

5,114

3,937

36,180

145

205

1,888

Profit attributable to non-controlling interests

205

172

1,586

Profit attributable to shareholders of the parent¥4,908¥3,764$34,594

Extraordinary income:Gain on disposal of fixed assets
Extraordinary losses:
Impairment losses*4

Losses on disposal of fixed assets
Income before income taxes and non-controllinginterests

ProfitTHE YAMANASHI CHUO BANK 202034

Net unrealized gains on available-for-salesecurities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Total comprehensive income
Total comprehensive income attributable toshareholders of the parent
Total comprehensive income attributable to noncontrolling interests

THE YAMANASHI CHUO BANK 202035

③【Consolidated Statements of Changes in Net Assets】】

Millions of Yen
Shareholders' equity

Millions of Yen
FY2019 (From April 1, 2019 toMarch 31, 2020)
Balance at beginning of current
year

Shareholders' equity
FY2018 (From April 1, 2018 toMarch 31, 2019)
Balance at beginning of current
year

Commonstock

Capitalsurplus¥15,400

Retainedearnings¥8,287¥162,550

Changes during year:
Cash dividends
Profit attributable toshareholders of the parent

Total
shareholders’equityTreasurystock¥(3,685)(1,168)

4,908

4,908

Purchases of treasury stock(525)

Cancellation of treasury shares
Disposals of treasury stock(2,188)

2,188

(0)

15

2,189

Balance at end of current year

(525)

3,764

3,764

1,549

1,678

3,228

¥15,400¥8,287¥164,099¥(2,006)¥185,780¥32,188¥155¥2,415

Total net
assets¥217,311

Changes during year:
Cash dividends(1,168)

Profit attributable toshareholders of the parent

4,908

Purchases of treasury stock(525)

Cancellation of treasury shares
Disposals of treasury stock

14

Changes in ownership interestof parent due to transactions
with non-controlling interests

58

58

Transfer from retained earnings
to capital surplus

1,729(1,729)

111

900

659

1,671

¥8,398¥165,000¥(1,347)¥187,451

111

FY2019 (From April 1, 2019 toMarch 31, 2020)
Balance at beginning of current
year–¥15,400

Millions of Yen
Accumulated other comprehensive income
Total
Unrealized
Deferredaccumulated
Remeasurements
gains ongains orotherof defined benefit comprehensive Subscription Non-controlling
available-forlosses onsale securities
hedgesplans
incomerights to sharesinterests¥36,906¥─

¥(3,031)¥33,874¥174¥2,559Total net
assets¥222,388

Changes during year:
Cash dividends(1,135)

Profit attributable toshareholders of the parent

3,764

Purchases of treasury stock(1,128)Cancellation of treasury shares
Disposals of treasury stock

58

Changes in ownership interestof parent due to transactions
with non-controlling interests

111

Transfer from retained earnings
to capital surplus
Net changes in items other thanshareholders' equity

Transfer from retained
earnings to capital surplus
Net changes in items otherthan shareholders' equity

0(1,128)

111

Balance at end of current year

Total
accumulated
Remeasurements
otherof defined benefit comprehensive Subscription Non-controllingplansincomerights to sharesinterests¥ (2,900)

1,729

Changes in ownership interestof parent due to transactions
with non-controlling interests

Accumulated other comprehensive income¥─(1,128)(1,729)Net changes in items other thanshareholders' equity(2,189)─

¥35,088¥185,780(1,135)

Millions of Yen

FY2018 (From April 1, 2018 toMarch 31, 2019)
Balance at beginning of current
year¥(2,006)(1,135)

Disposals of treasury stock14

─Deferred
gains orlosses onhedges¥164,099

Profit attributable toshareholders of the parent

Total changes during year

Unrealized
gains onavailable-forsale securities¥8,287

Cash dividends

Cancellation of treasury shares

Net changes in items other thanshareholders' equity
Total changes during year

¥15,400

Total
shareholders’
Treasury stock
equityRetainedearnings

Purchases of treasury stock

Changes in ownership interestof parent due to transactions
with non-controlling interests
Transfer from retained earnings
to capital surplus

Capitalsurplus

Changes during year:¥182,551(1,168)

Commonstock(1,817)

(131)

1,686

19

143

1,849

Total changes during year

(1,817)

─

(131)

1,686

19

143

5,077

Balance at end of current year

¥36,906¥─

¥(3,031)¥33,874¥174¥2,559¥222,388

THE YAMANASHI CHUO BANK 2020

36

Total changes during year
Balance at end of current year

(22,994)(26)(1,362)(24,382)(27)

11(24,398)(22,994)¥13,912

(26)
¥(26)

(1,362)¥(4,393)(24,382)¥9,492

(27)
¥147

11
¥2,570(22,727)¥199,661

THE YAMANASHI CHUO BANK 202037

④【Consolidated Statements of Cash Flows】】

Thousands of U.S. Dollars
Shareholders' equity
FY2019 (From April 1, 2019 toMarch 31, 2020)
Balance at beginning of current
year

Commonstock

Capitalsurplus$141,505

Retainedearnings$76,150$1,507,855

Millions of Yen

Total
shareholders’
Treasury stock
equity$(18,440).

$1,707,070(10,431)(10,431)

Profit attributable toshareholders of the parent

34,594

34,594Purchases of treasury stock(10,371)

Cancellation of treasury shares
Disposals of treasury stock(15,893)

15,893

4

538

Changes in ownership interestof parent due to transactions
with non-controlling interests

1,025Transfer from retained
earnings to capital surplus

15,889Balance at end of current year

FY2019 (From April 1, 2019 toMarch 31, 2020)
Balance at beginning of current
year

2,021

18,576

83

574

5,277

Impairment losses

768

7,061

1,025

Increase (decrease) in accrued bonuses to
employees

1,256

(205)

(1,884)

Increase (decrease) in accrued bonuses todirectors and corporate auditors

(2)

(10)

(96)

8,274

6,060

15,359$1,516,129$(12,380)$1,722,429

Thousands of U.S. Dollars
Accumulated other comprehensive income
Total
Unrealized
accumulated
Deferred gains Remeasurements
gains onother
available-for- or losses on of defined benefit comprehensive Subscription Non-controlling
sale securities
hedgesplans
incomerights to sharesinterests$1,601$23,519

Total net
assets$2,043,453

Changes during year:

Decrease (increase) in net defined benefit asset(1,909)

621

5,711

Increase (decrease) in net defined benefit liability

23

(236)

(2,174)

Increase (decrease) in reserve for directors’ andcorporate auditors’ retirement benefits

(1)

(0)

(7)

Increase (decrease) in reserve forreimbursement of deposits

0

61

562

Increase (decrease) in reserve for contingent
losses

(12)

17

161

Interest income recognized on consolidated
statements of income(30,587)(30,294)(278,362)

794

805

7,398

(5,011)(2,810)(25,826)

–

(9)

(84)

(1,765)

1,090

10,025

145

67

618

Interest expenses recognized on consolidated
statements of income

Cash dividends(10,431)

Losses (gains) on investment securities

Profit attributable toshareholders of the parent

34,594Purchases of treasury stock

Losses (gains) on investments in money held in
trust(10,371)

Foreign exchange losses (gains) – net

Cancellation of treasury shares
Disposals of treasury stock
Changes in ownership interestof parent due to transactions
with non-controlling interests

542

Losses (gains) on disposal of premises andequipment

1,025

Net decrease (increase) in loans and bills
discounted(84,282)(97,320)(894,244)

Net increase (decrease) in deposits

48,50353,688493,328

Net increase in negotiable certificates of deposit(5,232)(5,188)(47,677)

Net increase (decrease) in borrowed money

130,240(14,580)(133,972)

Net decrease (increase) in due from banks(excluding cash equivalents)

43

(15)

(142)

Net decrease (increase) in call loans

2,390

2,922

26,856

Net increase (decrease) in payables under
securities lending transactions(6,864)22,005202,199

Net decrease (increase) in foreign exchanges(assets)(1,079)1,179

10,842

Transfer from retained
earnings to capital surplus
Net changes in items otherthan shareholders' equity(211,285)(244)(12,515)(224,044)

(250)

105

(224,189)

Total changes during year
Balance at end of current year

(211,285)$127,835(244)$(244)(12,515)$(40,372)(224,044)$87,219(250)$1,351

105$23,624(208,831)$1,834,622

38

2,262

(1,409)1,025

THE YAMANASHI CHUO BANK 2020

$ 55,916

Increase (decrease) in allowance for possible
loan losses$77,175$ 311,263¥6,085542–$ (27,857)¥ 7,229

Depreciation and amortization(15,889)$–

FY2019(From April 1, 2019
to March 31, 2020)

Adjustment for:(10,371)$141,505$ 339,120

FY2019(From April 1, 2019
to March 31, 2020)

Income before income taxes and non-controllinginterests

Net changes in items otherthan shareholders' equity
Total changes during year

FY2018(From April 1, 2018
to March 31, 2019)

Operating activities:

Changes during year:
Cash dividends

Thousands of U.S. Dollars

THE YAMANASHI CHUO BANK 202039

Millions of Yen

Thousands of U.S. Dollars

FY2018(From April 1, 2018
to March 31, 2019)

FY2019(From April 1, 2019
to March 31, 2020)

Net increase (decrease) in foreign exchanges(liabilities)

(347)

(305)

(2,812)

Net increase (decrease) in central clearing
counterparty margin requirements(1,400)––Interest income (cash basis)

33,26733,455

307,411

Interest expenses (cash basis)

(810)

(803)

(7,386)

Other – net(1,783)

4,007

36,821

Total adjustments

83,741(22,408)(205,905)

(990)

(945)

(8,686)82,750(23,354)(214,592)

Purchases of investment securities(356,902)(366,552)(3,368,116)

Proceeds from sales of investment securities

355,526

214,764

1,973,396

Proceeds from redemption of investment securities

127,901

29,716

273,054

Proceeds from increase (decrease) of money heldin trust–(10,000)(91,886)

Purchases of premises and equipment(972)(1,514)(13,915)

Proceeds from sales of premises and equipment

100

432

3,970

(1,153)(1,027)(9,439)1

0

3

124,502(134,180)(1,232,933)

Income taxes paid
Net cash provided by (used in) operating activities

FY2019(From April 1, 2019
to March 31, 2020)

Investing activities:

Purchases of intangible fixed assets
Proceeds from sales of intangible fixed assets
Net cash provided by (used in) investing activities【Notes to Consolidated Financial Statements】】
Important items used as basis for preparing consolidated financial statements
1. Items relating to scope of consolidation(1) Consolidated subsidiaries 4 companies
The names of consolidated subsidiaries are Yamanashi Chuo Guarantee Co., Ltd., Yamanashi Chugin Lease Co., Ltd.,
Yamanashi Chugin DC Card Co., Ltd. and Yamanashi Chugin Management Consulting Co., Ltd.
(2) Number of non-consolidated subsidiaries 4 companies
Yamanashi New Business Support Investment Limited Partnership
Yamanashi Sixth Industrialization Support Investment Limited Partnership
Yamanashi Chuo Bank Regional Revitalization Investment Limited Business Partnership
Yamanashi Chuo Bank SDGs Investment Limited Partnership
Non-consolidated subsidiaries are excluded from the scope of consolidation since their assets, ordinary income, and ourownership percentage of their net income and retained earnings do not have a material impact on our results of operations
and financial condition.
Yamanashi Chuo Bank SDGs Investment Limited Partnership was newly established during the consolidated fiscal year
under review.

2. Items relating to application of equity method(1) Non-consolidated subsidiaries accounted for by the equity method
Not applicable(2) Affiliates accounted for by the equity method
Not applicable(3) Number of non-consolidated subsidiaries not accounted for by the equity method 4 companies
Yamanashi New Business Support Investment Limited Partnership
Yamanashi Sixth Industrialization Support Investment Limited Partnership

Financing activities:(1,168)(1,135)(10,431)

(1)

(1)

(16)

(525)

(1,128)(10,371)

Proceeds from sales of treasury stock

14

58

542

Proceeds from changes in ownership interest in
subsidiaries that do not result in change of scope of
consolidation

–

(80)

(742)

(1,681)(2,287)(21,019)

(0)

(0)

(9)

Net increase (decrease) in cash and cash equivalents

205,571(159,822)(1,468,553)

Cash and cash equivalents, beginning of year

311,403516,974

4,750,296

Cash and cash equivalents, end of year *1¥516,974¥357,152$3,281,743

Dividends paid
Payment of dividends to non-controlling interests
Repurchases of treasury stock

Net cash provided by (used in) financing activities
Foreign currency transaction adjustments on cash andcash equivalents

Yamanashi Chuo Bank Regional Revitalization Investment Limited Business Partnership
Yamanashi Chuo Bank SDGs Investment Limited Partnership
Non-consolidated subsidiaries not accounted for by the equity method are excluded from the scope of the equity method
since our ownership percentage of their net income and retained earnings does not have a material impact on ourconsolidated financial statements.
Yamanashi Chuo Bank SDGs Investment Limited Partnership was newly established during the consolidated fiscal year
under review.
(4) Affiliates accounted for by the equity method
Not applicable

3. Items relating to business years of consolidated subsidiaries
All of the consolidated subsidiaries have their settlement day on March 31.

4. Items relating to accounting standards(1) Valuation standards and methods for trading account securities
Trading account securities, which are held for the purpose of earning capital gains, are reported at fair value and the related
unrealized gains and losses are included in earnings.
(2) Valuation standards and methods for securities① Held-to-maturity debt securities, of which management has the positive intent and ability to hold to maturity, are reported
at amortized cost, and available-for-sale securities, which are not classified as either of the aforementioned securities, are

THE YAMANASHI CHUO BANK 202040

THE YAMANASHI CHUO BANK 202041

reported at fair value with unrealized gains and losses, net of applicable taxes, reported in a separate component of equity.

The allowance for claims other than those referred to above (claims on normal borrowers and claims on borrowers requiring

Available-for-sale securities whose fair values are extremely difficult to be determined are stated at cost determined by thecaution, excluding claims for which the cash flow estimate method is applied) is provided primarily for the prospective loss

moving-average method. The cost of securities sold is determined based on the moving-average method.

amount for the upcoming year or prospective loss for the next three years. The prospective loss amount is the actual loan loss

② Securities used as trust assets in individually operated money trusts mainly for investment securities are evaluated using
fair value measurement.

rate for one year or three years based on the actual bankruptcy record, or calculated based on the average value of bankruptcy
probabilities over a certain period in the past. The calculation is made by adding necessary revisions such as future projections.

(3) Valuation standards and methods for derivative transactions
Derivative transactions are measured at fair value.

from the operational departments.

(4) Methods of depreciation of fixed assets

The policy for the allowance for possible loan losses of consolidated subsidiaries is similar to the Bank’s.

① Tangible fixed assets (excluding lease assets)
Depreciation of tangible fixed assets is calculated principally using the declining-balance method. (However, the straightline method is adopted for buildings (excluding facilities attached to buildings) that were acquired on or after April 1, 1998,
and for facilities attached to buildings and structures that were acquired on or after April 1, 2016.)
Useful lives of tangible fixed assets are primarily as follows:
Buildings

3 to 50 years

Other

2 to 20 years

All claims undergo a self-assessment of asset quality by the operational departments based on standards for selfassessment of asset quality. The results of these self-assessments are audited by an asset audit department independent(6) Accrued bonuses to employees
Accrued bonuses to employees are provided to cover the payment of bonuses to employees, in the amount of the estimatedbonuses payable to employees attributable to each fiscal year.
(7) Accrued bonuses to directors and corporate auditors
Accrued bonuses to directors and corporate auditors are provided in the amount of the estimated bonuses which are

The depreciation period of lease investment assets held by consolidated subsidiaries and booked as tangible fixed
assets is the lease period, and those leases are depreciated using the straight-line method, with the residual value being
the estimated disposal price at the conclusion of the lease.

attributable to each fiscal year.
(8) Reserve for directors’ and corporate auditors’ retirement benefits
A reserve for directors’ and corporate auditors’ retirement benefits is provided at the amount which would be required if all
directors and corporate auditors retired at the balance sheet date.

② Intangible fixed assets (excluding lease assets)
Amortization of intangible fixed assets is calculated principally using the straight-line method.
The amortization period of lease investment assets held by consolidated subsidiaries and booked as intangible fixed
assets is the lease period, and those leases are amortized using the straight-line method, with the residual value being theestimated disposal price at the conclusion of the lease.
Software for internal use by the Bank and its subsidiaries is calculated over the useful life of the software (principally five
years).

(9) Reserve for reimbursement of deposits
Provision is made for possible losses on future claims of withdrawal of deposits which were derecognized as liabilities undercertain conditions in an amount deemed necessary based on historical reimbursement experience.
(10) Reserve for contingent losses
Reserve for contingent losses, which is provided for possible losses from contingent events, is calculated by estimation of
the impact of those contingent events.

③ Lease assets
Lease assets employed in leasing transactions that do not transfer ownership of the lease assets to the lessee – bothpremises and equipment and intangible fixed assets – are depreciated by the straight-line method over the lease period.
Residual value of those lease assets is zero unless any guaranteed amount is prescribed in the lease agreement.
(5) Allowance for possible loan losses(11) Accounting procedures for retirement benefits
In calculating retirement benefit obligations, the Bank used the benefit formula as the method of attributing the estimatedretirement benefits to periods of service to the end of the consolidated fiscal year under review.
In addition, the method of recording expenses for past service costs and actuarial gains and losses are as follows.
Past service costs: Recognized in profit and loss using the straight-line method over a fixed period (10 years) within the

The allowance for possible loan losses is recorded in accordance with internally established standards for charge-offs andprovisions, as follows:

average remaining service period of employees at the time they occur.
Actuarial gains and losses: Recognized the amount equally divided by using the straight-line method over a fixed period

The allowance for claims on debtors who are legally bankrupt based on bankruptcy, special liquidation or other proceedings(10 years) based on the average remaining service period in each consolidated fiscal year in(“Bankrupt borrowers”) or effectively bankrupt (“Effectively bankrupt borrowers”) is provided based on the outstanding balance

which they occur and recorded in profit and loss from each of the following year of theof the claims after deduction of the amounts expected to be collected through the disposal of collateral and the execution of

occurrence.

guarantees.

(12) Foreign currency items

The allowance for claims on debtors who are not currently legally bankrupt but are highly likely to become bankrupt(“Potentially bankrupt borrowers”) is provided in the amount deemed to be necessary based on a comprehensive assessmentof the overall repayment ability of the debtor. The amount necessary shall be within the outstanding balance of the claims
after deduction of the amounts expected to be collected through the disposal of collateral and the execution of guarantees.
The allowance for claims on debtors who have restructured loans and loans related to their affiliates, for which cash flows
related to the recovery of loan principal or receipt of interest can be reasonably estimated, is provided based on the difference
between the present value of expected future cash flows discounted at the contracted interest rate and the carrying value ofthe claim (cash flow estimate method).

THE YAMANASHI CHUO BANK 2020

42

Foreign currency assets and liabilities are translated into yen at the exchange rates prevailing at the balance sheet date.
(13) Lease transactions(Lessor)
Revenues and cost of revenues of finance lease transactions are recognized when lease payments are made.
(14) Major hedge accounting methods
Interest rate risk and hedges
Hedge accounting method for interest rate risk resulting from financial assets is based on deferred hedges. Hedge
transactions are meant to avoid interest rate risks arising from the financial asset being hedged. Therefore, “micro hedges,”

THE YAMANASHI CHUO BANK 202043

in which derivative transactions such as individual interest rate swaps are conducted for each transaction, are performed as(Relating to Consolidated Balance Sheets)a hedging instrument.

*1 Shares held or investments in non-consolidated subsidiaries and affiliates

Evaluation of hedge effectiveness is taken as an evaluation of effectiveness when the conditions of the hedge instrument
and hedge object are largely identical.

As of March 31, 2020

(Millions of yen)

Investments(15) Cash and cash equivalents
For the purpose of reporting cash flows, cash and cash equivalents are defined as cash and due from the Bank of Japan.
(16) Consumption taxes
The accounting treatment of national consumption tax and local consumption tax is based on the tax exclusion method.

¥988*2 The amounts of loans to customers in bankruptcy and past due loans included in Loans and bills discounted were as follows:
As of March 31, 2020

(Millions of yen)

Loans to customers in bankruptcy¥2,602

Past due loans

19,355Loans to customers in bankruptcy represent nonaccrual loans to debtors who are legally bankrupt, as defined in Article 96,(Unapplied Accounting Standards, etc.)

Paragraph 1, Subparagraphs 3 and 4 of the Enforcement Ordinance for the Corporation Tax Law. Past due loans are defined・Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019)as nonaccrual loans except for loans to customers in bankruptcy and loans of which the interest payments are deferred in・Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Statement No. 31, July 4, 2019)

order to assist in the financial recovery of a debtor in financial difficulties.

・Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019)
・Implementation Guidance on Disclosures about Fair Value of Financial Instruments (ASBJ Statement No. 19, March 31, 2020)(1) Overview“Accounting Standard for Fair Value Measurement” and “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (“Accounting Standards for Financial Instruments, etc.”) were developed to improve comparability with theprovisions of international accounting standards, and guidance related to methods of fair value measurement were established.
Accounting Standards for Fair Value Measurement, etc. are applied to the fair value of financial instruments.
Furthermore, “Implementation Guidance on Disclosures about Fair Value of Financial Instruments” was revised, andaddendums were put in place for a breakdown of each level of fair value for financial instruments.

*3 The amount of accruing loans contractually past due three months or more included in Loans and bills discounted was asfollows:
As of March 31, 2020
Past due loans of three months or more

Scheduled to be adopted from the beginning of the fiscal year ending March 31, 2022.
(3) Impact of adopting revised accounting standards and implementation guidances
The amount of the impact is currently under evaluation.

¥12

Accruing loans contractually past due three months or more are loans on which the principal or interest is three months ormore past due.
*4 The amount of restructured loans for which the Bank has relaxed lending conditions included in Loans and bills discounted was
as follows:
As of March 31, 2020

(2) Scheduled adoption date(Millions of yen)

(Millions of yen)

Restructured loans for which the Bank hasrelaxed lending conditions¥4,855

Restructured loans are loans for which the Bank has relaxed lending conditions, such as: reduction of the original interest rate,
deferral of interest payment, extension of maturity date, or reduction of the amount of the debt or accrued interest.

・Accounting Standards for Disclosure of Accounting Estimates (ASBJ Statement No. 31, March 31, 2020)(1) Overview
Among the items based on accounting estimates for amounts recorded in the financial statements of the fiscal year underreview, accounting estimates in listings that contain risks posing a significant impact on the financial statements of thesubsequent year are meant to disclose information to aid the understanding of individuals using the financial statements.
(2) Scheduled adoption date
Scheduled to be adopted from the beginning of the fiscal year ending March 31, 2021.

*5 The total amount of loans to customers in bankruptcy, past due loans, accruing loans contractually past due three months ormore and restructured loans for which the Bank has relaxed lending conditions was as follows:
As of March 31, 2020
Total amount(Millions of yen)
¥26,825

The loan amounts identified in the preceding items (2) to (5) are before deducting any allowance for possible loan losses.
*6 Bills discounted are accounted for as financial transactions in accordance with JICPA Industry Audit Committee Report No. 24,
February 13, 2002, “Treatment for Accounting and Auditing of Application of Accounting Standard for Financial Instruments in
Banking Industry.” The Bank has the right to sell or pledge commercial bills discounted and foreign exchanges bought without(Additional Information)
We anticipate that the impact of COVID-19 will continue into the future to a certain extent. Although the effects on certain industries
during this period are severe for the time being, we assume that the impact will not result in substantial loan losses due to therestrictions. The face amount was as follows:
As of March 31, 2020

(Millions of yen)
¥4,985

economic policies of the national and local governments and support from financial institutions. However, additional losses may
occur in the future in the event that the end of the pandemic is delayed or its impact is perpetuated.

THE YAMANASHI CHUO BANK 2020

44

THE YAMANASHI CHUO BANK 202045

*12 The amount of guarantee liabilities for private placement bonds in “Securities” (provided in accordance with the Financial*7 Assets pledged as collateral were as follows:
As of March 31, 2020

(Millions of yen)

Instruments and Exchange Act, Article 2, Paragraph 3) was as follows:
As of March 31, 2020

Assets pledged as collateral
Investment securities(Millions of yen)

¥302,708¥5,443Liabilities related to pledged assets
Deposits

26,428

Payables under securities lendingtransactions

35,349Borrowed money

206,597

Other assets include central clearing counterparty margin requirements and guarantee deposits, the amounts of which are
as follows.
As of March 31, 2020

(Millions of yen)Central clearing counterparty margin
requirements¥60,000

Cash collateral paid for financial instruments

300

Guarantee deposits

277*8 Lease contract assets (the total sum of lease investment assets included in Other assets and interest receivables on lease
investment assets) for the remaining lease periods, which were pledged as collateral for a portion of borrowed money, wereas follows:
As of March 31, 2020

(Millions of yen)

Lease contract assets¥1,219Corresponding borrowed money

888*9 Commitment line contracts on overdrafts and loans are agreements to lend to customers when they apply for borrowing, up toa prescribed amount, as long as there is no violation of any condition established in the contract. The amounts of unused
commitments as of March 31, 2020 were as follows:
As of March 31, 2020
Total amount of unused commitments as ofthe end of the period:
Amount of unused commitments whose
original contract terms were within one year
or unconditionally cancelable at any time

(Millions of yen)
¥394,450
370,852

Since many of these commitments are expected to expire without being drawn upon, the total amount of unused commitments
does not necessarily represent actual future cash flow requirements. Many of these commitments have clauses that allow the
Bank to withdraw the commitment line offer or reduce the contract amounts in situations where economic conditions arechanged, the Bank needs to secure claims, or other conditions are triggered.
In addition, the Bank requires the customers to pledge collateral such as premises and securities and takes necessary
measures such as seizing the customers’ financial positions, revising contracts when the need arises and securing claims
after conclusion of the contracts.

(Relating to Consolidated Statements of Income)*1 “Other ordinary income” includes the following item:
From April 1, 2019 to March 31, 2020

(Millions of yen)

Gain on sales of stock¥2,066*2 “General and administrative expenses” include the following:
From April 1, 2019 to March 31, 2020

(Millions of yen)

Salary allowance¥11,119*3 "Other ordinary expenses" include the following:
From April 1, 2019 to March 31, 2020

(Millions of yen)

Loss on cancellation of investment trusts¥4,014

Loss on sales of equity securities
Loss on devaluation of stocks and othersecurities

537
158

*4 In the case of the following asset groups, book values were written down to the recoverable levels due to falling land prices
and lower net cash from operating activities, and differences have been recorded as impairment losses.
From April 1, 2019 to March 31, 2020

(Millions of yen)

Location

Use

Category

Yamanashi Prefecture

Operating assets

Land and buildings¥293

Idle assets

Land
Other tangible fixed
assets

274

–

¥574

Tokyo

Operating assets

Total

–

Total impairment loss

In this method of asset grouping, operating assets as a rule are treated as business premises units (however businesspremises groups that handle combined businesses are treated as Group units), and idle assets are treated as individual
asset units. The Head Office, computing centers, company residences and dormitories, etc. are regarded as shared assets.
Recoverable amounts are whichever is the higher of net selling prices and value in use. In the case of net selling prices,
the calculation involves deduction of expected disposal expenses from the sum reasonably calculated by real estate asset
valuation, etc. In the case of value in use, the calculation involves discounting future cash flows by a discount rate.
The calculation of recoverable amounts for the fiscal year ended March 31, 2019 employs a 2.0% discount rate in thecase of value in use.
The calculation of recoverable amounts for the fiscal year ended March 31, 2020 employs a 1.9% discount rate in thecase of value in use.

*10 Accumulated depreciation of tangible fixed assets
As of March 31, 2020
Total amount of accumulated depreciation(Millions of yen)
¥34,390*11 Deferred gains on tangible fixed assets deductible for tax purposes
As of March 31, 2020

(Millions of yen)

Deferred gains(Reduction entry amount for the
consolidated fiscal year)

¥740

(–)

THE YAMANASHI CHUO BANK 2020

46

5

THE YAMANASHI CHUO BANK 2020

47

(Relating to Consolidated Statements of Comprehensive Income)

2. Items relating to share subscription rights and own share options
Class ofshares to beissued ortransferred
upon theexercise ofshare
subscription
rights*1 Reclassification adjustment and tax effect related to comprehensive income
From April 1, 2019 to March 31, 2020

(Millions of yen)

Net unrealized gains on available-for-sale securities:
Difference arising during the fiscal year¥(31,586)

Reclassification adjustment to profit and loss

(1,325)

Amount before income tax effect(32,912)

Income tax effect9,951

Net unrealized gains on available-for-sale securities(22,961)

Beginningof FY2019

Difference arising during the fiscal year(38)

Income tax effect11(Resolution)

Deferred gains or losses on hedges(26)

Annual General Meetingof Shareholders on
June 25, 2019
Board of Directors
Meeting on
November 14, 2019

Remeasurements of defined benefit plans:(2,456)

Reclassification adjustment to profit and loss

497

Amount before income tax effect(1,958)

Income tax effectTotal other comprehensive income

¥147

–

¥147

Type of stock

Total dividend(Millions of yen)

Common stock¥577

Common stock

557

Dividends per
share (Yen)

Reference date

Effective date

¥17.50March 31, 2019

June 26, 201917.50

September 30, 2019

December 4, 2019

(1,362)(Resolution)

Type of stock

Fund for dividend

Dividends per
share (Yen)

Reference date

Effective date¥(24,349)

Total dividend(Millions of yen)

Annual General
Meeting of
Shareholders on
June 24, 2020

Common stock¥557

Retained earnings¥17.50March 31, 2020

June 25, 2020

(Relating to Consolidated Statements of Changes in Net Assets)
From April 1, 2019 to March 31, 2020

(Relating to Consolidated Statements of Cash Flows)

1. Items relating to kind and total number of shares outstanding and treasury stock(Thousands of shares)
Increase in number of Decrease in number of Number of shares atshares during FY2019 shares during FY2019 the end of FY2019*1 The reconciliation of the cash and due from banks in the consolidated balance sheets and the cash and cash equivalents at
March 31, 2020 is as follows:

Remarks

From April 1, 2019 to March 31, 2020

(Millions of yen)

Cash and due from banks

Shares outstanding
–

1,200

32,783¥357,267

Due from banks, excluding due from Bank of Japan

Note 1(115)

Cash and cash equivalents

Treasury stock
Common stock
962
1,200
1,228
934
Note 2, 3
Notes: 1. The decrease in the number of treasury shares during the consolidated fiscal year under review is due to the cancellation oftreasury shares.
2. The breakdown of the increase in the number of treasury shares during the fiscal year under review is as follows:
Increase by acquisition of treasury stock upon resolution of the Board of Directors 1,200 thousand shares
Increase by demand for purchase of shares less than one unit 0 thousand shares
3. The breakdown of the decrease in treasury shares during the fiscal year under review is as follows:
Decrease by exercise of stock option rights 28 thousand shares
Decrease by cancellation of treasury stock 1,200 thousand shares
Decrease by demand for purchase of shares less than one unit 0 thousand shares

THE YAMANASHI CHUO BANK 2020

48–(2) Dividends whose reference date falls in the current fiscal year, but where the effective date occurs after the end of FY2019

596

Remeasurements of defined benefit plans

End of
FY2019(1) Dividend paid during FY2019(38)

Gains (losses) arising during the fiscal year

Decrease

Balance asof the endof FY2019(Millions ofyen)

3. Items relating to dividends–

Amount before income tax effect33,983

Increase

Total

Reclassification adjustment to profit and loss

Common stock

FY2019Stock options asshare subscription
rightsThe Bank

Deferred gains or losses on hedges:

Number of shares atthe beginning of
FY2019

Breakdown of sharesubscription rights

Classification

Number of shares to be issued or transferred upon
the exercise of share subscription rights (shares)¥357,152(Relating to Lease Transactions)
Finance leases(Lessor)
1. Details of net investment in leases for the year ended March 31, 2020 are as follows:
As of March 31, 2020

(Millions of yen)

Gross lease receivables¥9,260Estimated residual value

218

Unearned interest income(901)

Net investment in leases¥8,577

THE YAMANASHI CHUO BANK 2020

49

2. Expected amounts from the collection of gross lease receivables for the year ended March 31, 2020 are as follows:
As of March 31, 2020

management and refining measurement of value at risk (VaR).
We monitor credit information, current-prices and VaR and manage the credit risk of issuers of securities and counterparty(Millions of yen)risk of derivative transactions in the Risk Management Section.

1 year or less

¥2,7781 to 2 years

2,331

2 to 3 years

1,882

3 to 4 years

1,282

4 to 5 years

602

Over 5 years

383

The Group supports the needs of customers properly and, for the earning capacity improvement of the Bank, conducts¥9,260interest rate risk management as a basic policy. We devised “the basic policy for the interest rate risk hedge” as a general

Total

The situation of these risk management activities is reported regularly to management in the ALM Committee and theBoard of Directors.
② Market risk management(A) Interest rate risk management

rule every half term to control interest rate risk properly in the ALM Committee in which management is involved as the(Financial Instruments and Related Disclosure)main members and involved in examining interest rate changes and reviews it regularly. In addition, in the ALM Committee

1. Qualitative Information of Financial Instruments

meeting held monthly, the Group examines an interest rate predictive report that the Interest Rate Prediction Committee(1) Policy for financial instruments

produces and monitors the change in the interest rate risk amount of the whole bank account closely. In the Risk

The Group is involved in financial services including the leasing and the credit card business, etc., centered around the banking

Management Section, the Group calculates VaR and basis point value (BPV), and manages the interest rate risk amountbusiness. Within banking, we are involved in the business of taking deposits, making loans and securities trading, as well asof the banking account. In addition, the Group performs stress tests based on a stress scenario extending to each risk

domestic and foreign exchange operations, corporate bond underwriting, the over-the-counter sale of public bonds such as

category. These results are reported regularly to management in the ALM Committee and the Board of Directors.

Japanese government bonds, investment trusts and insurance. In addition, for the purpose of short-term fundraising, we enter(B) Foreign exchange risk management

into call loans and call money in the interbank market. Derivative transactions are primarily meant for hedges against interest

The Group manages foreign exchange risk by monitoring exposure to foreign exchange and VaR in the Risk Management

rate risk or the risk of exchange fluctuations and may involve transactions such as interest rate swaps, forward exchanges or

Section. Moreover, it reports regularly to management in the ALM Committee, Board of Directors, etc. The majority ofcurrency swaps. However, we do not conduct transactions whose structures are complicated and speculative transactions.

foreign exchange risk is hedged by forward exchange contracts.

Because we hold financial assets and liabilities with interest rate risk, we conduct Asset Liability Management (ALM) to limit(C) Market price risk management

the disadvantageous influence from fluctuations in interest.

Regarding investment in financial instruments including securities, the Group conducts risk management in conformity(2) Nature and extent of risks arising from financial instrumentswith a basic administration policy. The basic administration policy is as follows. The Group executes the market business

The financial assets that the Group holds are loans for domestic customers and domestic and foreign securities. Loans have

while attempting to secure fairness and prompt correspondence. The Group realizes the opportunity for earnings bycredit risk, brought about by the borrower’s nonperformance of contractual obligations. The contents of securities are mainly

actively taking risks that can be measured and managed. The proof of maximizing management vitality, like earnings andbonds, stocks and investment trusts. The Group holds these securities for the purpose of holding to maturity, investment

equity capital, is assumed to be a precondition. The operative plans are decided by the Board of Managing Directors after

available for sale and policy investment. Securities have issuer’s credit risk, interest rate risk and market price risk.

discussion with the ALM Committee.

The Group regards the deposits from customers as its main supply of financial funds. The Group secures stable financing

In making the plans, the Group examines the expected rate of return based on the prospect of interest rates and stockby maintaining the soundness of financial affairs, but has liquidity risk that may make it impossible to obtain necessary funds

prices, market price risk and return in consideration of the correlation between the financial instruments invested in. The

due to the outflow of unexpected funds.

Group measures market price risks such as stock price risk using the VaR method. The ALM Committee monitors VaR

As with other transactions, derivative transactions are subject to risks such as market, credit, and liquidity risks. Hedge
accounting is applied for derivative transactions that meet the requirements of hedge accounting based on internal standardsin accordance with JICPA Industry Audit Committee Report No. 25, July 29, 2002, “Treatment of Accounting and Auditing
concerning Accounting for Foreign Currency Transactions in the Banking Industry.”

based on risk limits and the results of stress tests and tries for coexistence of securing financial soundness and earning
profit.
(D) Derivative transactions
For derivative transactions, the aim is for maintenance of strong management so as not to exert a negative influence on
profit and loss, and the Group tries to set position limits and operate loss-cut rules strictly based on the risk management(3) Risk management systems for financial instruments

standard. Moreover, the Group reports regularly to management in the ALM Committee, Board of Directors, etc.

① Credit risk management
The Group performs maintenance of the credit screening system, fosters talented human resources and positively advances(E) Quantitative information regarding market risk

credit risk management. The credit screening system keeps the credit screening section independent and performs strict

In principle, the Group undertakes a quantitative analysis of the market risks applicable to all of its financial instruments.

screening in advance, performs interim screening and assesses credit enhancements and credit risk management after

The volume of market risk is mainly managed utilizing the VaR method. In specific terms, market risks are managed in alending. Regarding administration, the marketing section and credit screening section or the headquarters and businessmanner that ensures that VaR (the amount of risk after writing down investment in shares undertaken for strategic

offices perform mutual check functions. The Group tries for the observance of the financing rule and appropriate use andbusiness purposes for a portion of VaR) does not exceed the maximum amount of risk (amount of capital allocation)

thereby acts in enhancement of system support such as the practical use of the financing support system. Furthermore, fordetermined by a resolution of the Board of Directors or other appropriate bodies. The variance-covariance method

coping with risk fluctuating continually, the Group monitors the actual condition of customers through credit rating and self-(holdings period: 240 days; confidence interval: 99%; observation period: 240 business days) is used to measure VaR

assessment to be performed regularly or at any time. The Group introduced the “credit risk information integration service,”(excluding trading account securities) while taking into consideration the correlation among interest rates for shares andwhich is a joint undertaking of the banks that joined the Regional Bank Association, aiming at upgrading credit risk

investment trusts. In addition, with respect to the yen-denominated interest risk applicable to demand deposits, internal
models are used to estimate core deposits and VaR is used as the means for measurement. Trading account securities

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THE YAMANASHI CHUO BANK 202051

(trading securities) VaR is measured using the separate holding period of 10 days. Financial instruments that are

2. Fair Values of Financial Instruments

considered to have little relevance to market risks, including shares of non-listed companies, are managed on a credit risk

Fair value and carrying amounts of financial instruments are shown below. Some instruments, such as unlisted stocks, whose fairbasis. Taking into consideration the nominal amount of market risk applicable to the financial instruments held byvalues are extremely difficult to determine, are not included in the table below (see Note 2).

consolidated subsidiaries, these financial instruments are excluded from the scope of VaR measurement.

As of March 31, 2020

(Millions of yen)
Carrying amount inconsolidated balance
sheetsThe Group’s VaR (excluding trading account securities) amounted to ¥102,456 million as of March 31, 2020 comparedwith ¥47,737 million as of the end of the previous fiscal year. The VaR of trading account securities amounted to ¥0 million.

Fair value¥357,267¥357,267

¥–

5,443

5,437

(6)

1,213,875–

1,789,275

1,797,588

8,313

60,00060,000–Total assets¥3,425,861¥3,434,169¥8,307(1) Deposits¥2,976,587¥–¥–

2,976,818

2,976,855

37

56,907¥–¥–56,90956,9101(3) Payables under securities lending transactions

35,34935,349–(4) Borrowed money

207,485

207,484(0)¥3,276,562¥3,276,600¥37

Hedge accounting is not applied

¥47

¥47

¥–

Hedge accounting is applied

(38)

(38)

–

¥9

¥9

¥–

(Previous consolidated fiscal year: ¥0 million). The Group undertakes backtesting to compare VaR, calculated using VaR(1) Cash and due from banks

measurement models with actual income and loss. The results of this comparison are reported to the ALM Committee on(2) Securities

a monthly basis. As a result of this backtesting, the Group is confident that the VaR measurement models used are more

Held-to-maturity

than adequate in accurately identifying market risks. However, VaR represents the amount of market risk arising with a

Available-for-sale securities

1,213,875

certain probability using a statistical methodology based on historical market volatilities. Accordingly, situations may arise(3) Loans and bills discounted

1,801,580

where it is not possible to identify risks appropriately due to market environment volatility that exceeds normally recognizedparameters.

539

Accrued income (Interest on loans)
Deferred income (Interest on loans and guarantee charge)③ Liquidity risk management
The Group controls liquidity risk by managing the mismatch between the terms of investing and procuring funds as well as
holding highly liquid assets. Financing risk is limited by holding assets with high liquidity as payment reserves for unexpected
capital outflows, and a smooth financing resource is secured. Moreover, the Group reports regularly to management in the
Risk Management Committee, Board of Directors, etc.
(4) Supplementary explanation of the fair value of financial instruments
The fair value of financial instruments includes, in addition to the value based on the market price, the value reasonably
calculated if no market prices are available. Certain assumptions are used in the calculation of such amounts. Accordingly,
the results of such calculations may vary if different assumptions are used.

Difference

Allowance for possible loan losses(1,699)*1(11,144)*2(4) Other assets
Central clearing counterparty margin requirements

230

Accrued expenses (Interest on deposits)(2) Negotiable certificates of deposits

1

Accrued expenses (Interest on NCDs)

Total liabilities
Derivatives *3

Total derivatives*1. Represents deferred interest received on loans and deferred guarantee fees received from a consolidated subsidiary performing guarantees
on the Bank’s loans to customers.
*2. General allowance for possible loan losses and specific allowance for possible loan losses provided to “Loans and bills discounted” areseparately presented in the above table.
*3. Derivative transactions recorded in “Other assets” and “Other liabilities” are aggregated and shown herein. Assets and liabilities attributable tothe derivative transactions are totally offset and the net liability position as a consequence of offsetting would be represented with brackets.

(Note 1) Method used for determining the fair value of financial instruments
Assets(1) Cash and due from banks
For due from banks without maturity, fair value is the value closest to acquisition cost or amortized cost. For due from bankswith maturity, the contract period is short (less than one year) and fair value is the value closest to acquisition cost or
amortized cost.

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Derivatives(2) Securities
The fair values of stocks are determined by reference to quoted market prices on stock exchanges. The fair values of bonds
are determined by reference to quoted market prices or prices offered by correspondent financial institutions. The prices of

Derivative transactions are listed under “Relating to Derivative Transactions.”(Note 2) Financial instruments, whose fair values are extremely difficult to determine, recorded on the consolidatedbalance sheets are as follows. The following instruments are not included in “Securities” in the above table

the Bank’s guaranteed private placement bonds are calculated by discounting the estimated future cash flows for eachshowing the fair values of financial instruments as of March 31, 2020.

classification based on the issuers’ internal rating and terms by using risk-free interest rates plus credit cost rates andexpense rates. Investment trusts are determined by reference to their publicly available net asset value.

As of March 31, 2020

(Millions of yen)
Carrying amountInformation outlining notes for investment securities according to the purpose for which they are held is contained under“Relating to Securities.”(3) Loans and bills discounted
As floating-rate loans and bills discounted reflect market interest rates over short periods, unless the credit standing of theborrower is significantly different after the loan was made or the bill was drawn, the fair value approximates the carrying
value. The fair value is therefore deemed equal to the carrying value.
The fair values of fixed-rate loans and bills discounted are their present values that are estimated for each classification

Unlisted equity securities *1 *2¥760

Contributions to unions *3

3,436

Total

¥4,196*1. They are excluded from disclosure because they do not have a market price and their fair values are extremely difficult to determine.
*2. Classified as available-for-sale securities; in the previous consolidated fiscal year, an impairment loss of ¥4 million was recognized.
*3. Investments in partnerships comprising partnership assets with fair values that are extremely difficult to determine, such as unlisted stocks,
are excluded from the disclosure of fair value.

based on their type, internal rating, status of collateral and guarantee, and terms, and by discounting the future cash flows(Note 3) Maturity analysis for monetary claims and securities with contractual maturitiesof the principal and interest using the rates at which similar new loans would be made or market interest rates plus credit

As of March 31, 2020

cost rates in accordance with internal ratings and expense rates. The fair values of fixed-rate loans and bills discounted
whose terms are short (within one year) approximate their carrying values and are therefore deemed equal to the carrying
values.
Losses from loans to borrowers in legal bankruptcy, in virtual bankruptcy and in possible bankruptcy are computed based(Millions of yen)
1 year or lessDue from banks
Securities
Held-to-maturity

Over 1 year lessthan 3 years

Over 3 years lessthan 5 years

Over 5 years lessthan 7 years

Over 7 years lessthan 10 years

Over 10 years¥320,693

¥–

¥–

¥–

¥–

¥–

32,252

209,306

105,808

127,140

199,670

46,763

855

1,665

2,322

653

–

–

1,665

2,322

653

–

–

on estimated recoverable amounts. Thus, the fair values of those loans approximate the consolidated balance sheet

Corporate bonds

855

amounts at the closing date minus the currently estimated losses and are therefore deemed equal to the amounts.

Available-for-salesecurities that havematurities

31,397

207,641

103,486

126,487

199,670

46,763

Japanesegovernment bonds

3,000

133,800

26,00090,40031,0008,000

Municipal bonds

24,27959,076

46,97915,48391,452

29,463

Corporate bonds

4,117

14,544

12,331

6,456

53,790

9,300

–

220

18,17414,14723,427–Loans and bills
discounted *1

355,248

318,754

268,826

164,063

239,008

313,147

Central clearing
counterparty margin
requirement *2

60,000

–

–

–

–

–

¥768,193¥528,060¥374,634¥291,203¥438,678¥359,911

The fair values of loans and bills discounted for which repayment terms are not set because of their attributes (e.g. loans
are limited to the amounts of pledged assets) are assumed to approximate their carrying values, considering the expected
repayment periods and interest rate conditions, and are deemed equal to the carrying values.
(4) Other assets
Since the fair value approximates the acquisition cost or the amortization cost, the fair value of central clearing counterparty
margin requirements is treated as the actual amount.
Liabilities(1) Deposits and (2) Negotiable certificates of deposit
The fair values of demand deposits are deemed equal to the amounts that would be paid (carrying values) if the payments
were demanded at the balance sheet date. The fair values of time deposits and negotiable certificates of deposit, which areclassified in accordance with their periods, are their present values that are estimated by discounting the future cash flows
using the rates that would be offered for new deposits to be received.
The fair values of deposits and negotiable certificates of deposit with short deposit terms (within one year) or withvariable interest rates approximate their carrying values and are deemed equal to their carrying values.

OthersTotal*1 Of loans and bills discounted, the portion whose timing of collection is unforeseeable, such as loans to borrowers in legal bankruptcy, in virtual
bankruptcy and in possible bankruptcy, amounting to ¥21,958 million, is not included in the above table. Loans that do not have contractual
maturities, amounting to ¥120,456 million, are not included either.
*2 Because no period is set for the central clearing counterparty margin requirement, it is included under “1 year or less.”(3) Payables under securities lending transactions
Since the contract periods are short (1 year or less), the book value is treated as the fair value because the fair value
approximates the book value.
(4) Borrowed money
Since money borrowed at floating rates reflects short-term market interest rates, and since the credit standing of the Bankand its consolidated subsidiaries does not vary greatly following such loans, the fair value approximates the book value,
and the book value is treated as the fair value. The present value of money borrowed at fixed rates is calculated bydiscounting the total value of the principal and interest of the borrowed money by the expected interest rate for similar loans.
For borrowings with short contract periods (less than one year), the fair value approximates the book value, and the bookvalue is treated as the fair value.
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55

(Note 4) Maturity analysis for interest-bearing debt

3. Available-for-sale securities

As of March 31, 2020

(Millions of yen)Over 1 year lessthan 3 years

Over 3 years lessthan 5 years

Over 5 years lessthan 7 years

Over 7 years lessthan 10 years

Over 10 years¥2,623,876¥237,457¥18,714

¥–

¥–

¥–

Negotiable certificatesof deposit

56,867

40

–

–

–

–

Payables under
securities lendingtransactions

35,349

–

–

–

–

–

Borrowed money

1,525

205,817

143

–

–

–

¥2,717,619¥443,314¥18,857

¥–

¥–

¥–

1 year or less
Deposits *Total

As of March 31, 2020

(Millions of yen)
Fair value inconsolidated balance
sheetsType

Fair value exceeds
cost

Valuation difference

Japanese stocks¥36,818¥14,256¥22,561

Bonds total

487,219474,252

12,966

Japanese government bonds

305,852

295,434

10,418Japanese municipal bonds

132,659

130,841

1,817Japanese corporate bonds

48,70747,976730

245,066

234,820

10,24557,73654,091

3,645

Other securities* Non-interest-bearing deposits such as checking accounts are excluded. Demand deposits are included in “1 year or less.”

Cost

Foreign securities(Relating to Securities)

Subtotal

769,104

723,330

45,774*1 In addition to including the securities listed on the consolidated balance sheets, this includes trading account securities.

Japanese stocks

11,653

14,632(2,979)Bonds total

197,905

199,668(1,763)

Japanese government bonds

8,466

8,560

(93)

Japanese municipal bonds

136,124

137,106(981)

Japanese corporate bonds

53,31354,002(688)

235,212

256,112(20,899)

1,971

2,033

(61)

444,771

470,414(25,642)¥1,213,875¥1,193,744¥20,131*2 Subsidiary and affiliated company shares are listed in notes to the financial statements.

1. Trading account securities
As of March 31, 2020

(Millions of yen)

Fair value does notexceed cost

Unrealized gains/losses recognized as income
Trading account securities¥–

Other securities

2. Held-to-maturity debt securities

Foreign securities

As of March 31, 2020

(Millions of yen)
Carrying amount inconsolidated balance
sheetsType
Fair value exceeds carrying amount
Fair value does not exceed carrying amount

Fair value

Difference

Corporate bonds¥2,890¥2,901¥10

Corporate bonds

2,553

2,535

(17)

¥5,443¥5,437

¥ (6)

Total

Subtotal
Total

4. Held-to-maturity debt securities soldNot applicable
5. Available-for-sale securities soldFrom April 1, 2019 to March 31, 2020
Type(Millions of yen)
Sales cost

Gross realized gains

Gross realized losses

Japanese stocks¥3,828¥1,360¥488

Bonds total

30,366

158–

30,366

158–

Japanese municipal bonds

–

–

–

Japanese corporate bonds

–

–

–

30,061

2,090

49

5,695

106

–

¥64,256¥3,609¥537

Japanese government bonds

Other securities
Foreign securities
Total

6. Securities for which the purpose for holding has changed
Not applicable
7. Securities recognized for revaluation loss
Among securities other than securities for trading purposes (except securities for which the fair value is extremely difficult toascertain), for securities that are not recognized as having prospects of recovery after their fair value fell sharply compared with
their acquisition cost, fair value is recognized in the consolidated balance sheets, and the valuation difference is treated as an

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THE YAMANASHI CHUO BANK 202057

impairment loss (“revaluation loss”) in the consolidated year under review.

(1) Interest-related derivative instruments

No revaluation loss was recognized during the previous fiscal year.

Not applicable

An impairment loss of ¥256 million (¥154 million in shares and ¥102 million in securities) was recognized during the fiscal year
ended March 31, 2020.

(2) Currency-related derivative instruments
As of March 31, 2020

The impairment accounting standards applied in cases where fair value is judged to have fallen significantly are as follows:①

Type

Across-the-board impairment losses shall be booked for securities whose fair values as of the consolidated balance sheet
Impairment losses shall be booked for securities whose fair values decline by 30% or more, but less than 50%, where it isdeemed that there is little likelihood of a recovery in value after taking into consideration fair value levels over the past year.

③

Impairment losses shall be booked for securities whose fair values decline by less than 30% as and when deemedOver 1 year

Fair value

Unrealized gain/loss

Currency futures

date decline by 50% or more compared with their acquisition costs.
②(Millions of yen)Contract amount or
notional amountFinancial
instruments
exchangenecessary after taking into consideration the financial standing and related factors of the issuer.

Sold

–

–

–

–

Buy

–

–

–

–

Sold

–

–

–

–

Buy

–

–

–

–

¥21,927¥21,927

¥64

¥64

Sold

6,313

–

(32)

(32)

Buy

742

–

15

15

Sold

–

–

–

–

Buy

–

–

–

–

Sold

–

–

–

–

Buy

–

–

–

–

¥–

¥–

¥47

¥47

Currency options

Currency swaps(Relating to Money Held in Trust)Forward rate agreements

1. Money held in trust for investment
As of March 31, 2020

(Millions of yen)
Valuation difference included in consolidated
gains or losses

Balance sheet amountMoney held in trust for investment¥ (2)¥9,991OTC

Currency options

Other

2. Money held in trust to maturity
Not applicable
Total

3. Other money held in trust (for objectives besides investment and held to maturity)
Not applicable

Notes: 1. Derivative instruments are revalued to fair value. Changes in fair value are included in the consolidated statements of income.
2. Determination of fair value: Fair value is determined based on the discounted net present value model.

(3) Stock-related derivative instruments(Relating to Net Unrealized Gains/Losses on Available-for-Sale Securities)
Available-for-sale securities were valued at market price and net unrealized gains/losses on valuation were as follows:
As of March 31, 2020

(Millions of yen)Amounts

Valuation difference¥20,131

Other securities

20,131

Deferred tax liabilities

6,057
14,073Net unrealized gains (before non-controlling interests)

161

Non-controlling interests¥13,912

Net unrealized gains on available-for-sale securities

Not applicable(4) Bond-related derivative instruments
Not applicable(5) Commodity-related derivative instruments
Not applicable(6) Credit derivative transactions
Not applicable
2. Derivative instruments accounted for as hedges
With regard to derivative transactions to which hedge accounting is applied, the hedge accounting method, principal amountdetermined in the contract and fair value of each transaction on the consolidated closing date is as follows. Furthermore, thecontract amount itself does not indicate the market risk associated with the derivative transactions.

(Relating to Derivative Transactions)
1. Derivative instruments not accounted for as hedges
Regarding derivative instruments which are not accounted for as hedge transactions, contract amount or notional amount, fairvalue and unrealized gain or loss for each type of derivative transaction at the end of the consolidated balance sheet date anddetermination of fair value are as follows. Contract or notional amounts do not show market risk of derivative instruments.

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(2) Reconciliation of pension assets at beginning of year and end of year

(1) Interest rate related transactions
As of March 31, 2020

(Millions of yen)

Hedge accounting
methodPrinciple methodof recording gains
and losses

Special treatment
as interest rate
swaps

Type

Main hedge object

Contract
amount, etc.

Interest rate swaps
Fixed income/Fluctuating
payment

Contracts over one year

Fair value––¥3,000¥3,000

¥(38)

–

–

–

Interest rate options

–

–

–

Other

–

–

–

Interest rate swaps
Fixed income/Fluctuating
payment–––

Other securities(Liabilities)–

Fluctuating income/Fixed
payment(Millions of yen)

Pension assets at beginning of year

¥34,194
928

Expected return on plan assets–

Fluctuating income/Fixed
payment
Interest rate futures

From April 1, 2019 to March 31, 2020

–

Total
¥–
Notes: 1. Hedge accounting method for interest rate risk resulting from financial assets is based on deferred hedges.
2. Determination of fair value: Fair value is determined based on the discounted net present value model.

–

–

¥–

¥(38)

Actuarial gains and losses(2,683)

Employer's contribution

1,716

Retirement benefits payment

(731)
–

Other
Pension assets at end of year

¥33,424(3) Reconciliation of retirement benefit obligations and pension assets at end of year and liabilities and assets of retirement
benefits recorded in the consolidated balance sheets
As of March 31, 2020

(Millions of yen)

Retirement benefit obligations of funded plan

¥31,023

Pension assets(33,424)(2,400)–Retirement benefit obligations of unfunded plan
Assets and liabilities recorded in consolidated balance sheets, net(2) Currency-related transactions¥(2,400)

Not applicable(3) Stock-related derivative instruments(Millions of yen)

Not applicable(4) Bond-related derivative instruments

Liability of retirement benefits¥–

Assets of retirement benefits(2,400)Assets and liabilities recorded in the consolidated balance sheets, net

Not applicable(Relating to Employees’ Retirement Benefits)(4) Breakdown of retirement benefit costs

1. Outline of employees’ retirement benefits

From April 1, 2019 to March 31, 2020

¥ (2,400)(Millions of yen)

To provide for employees’ retirement benefits, the Bank has adopted a funded defined benefit pension plan and a definedService cost

contribution pension plan.

Interest cost

122

The defined benefit corporate pension plan (funded plan) pays a lump sum or a pension based on employee compensation andlength of service.

Expected return on plan assets(928)

A retirement benefit trust has been established within the defined benefit corporate pension plan.
The lump-sum retirement plan (an unfunded plan, but as a result of the establishment of the retirement benefit trust, it has
become a funded plan) pays a lump sum based on employee compensation and length of service.
2. Funded defined benefit pension plan

¥1,118Actuarial gains and losses recorded in expenses

521

Past service costs recorded in expenses

(23)
–

Other
Retirement benefit costs of defined benefit plan

¥810

(5) Remeasurements of defined benefit plans(1) Reconciliation of retirement benefit obligations at beginning of year and end of year
From April 1, 2019 to March 31, 2020

The breakdown of items (before tax-related effects) recorded in remeasurements of defined benefit plans is as follows:(Millions of yen)

Retirement benefit obligations at beginning of year

¥31,409

From April 1, 2019 to March 31, 2020

(Millions of yen)

Past service costs¥23

Service cost

1,118Interest cost

122

Other

–

Actuarial gains and losses(227)

Retirement benefits payment(1,399)Total¥1,958

Past service costs

–

Other

–

Retirement benefit obligations at end of year

Actuarial gains and losses

1,935¥31,023

THE YAMANASHI CHUO BANK 2020

60

THE YAMANASHI CHUO BANK 2020

61

(Stock Options and Other Related Information)(6) Accumulated adjustment for retirement benefits
The breakdown of items (before the deduction of tax effects) recorded in accumulated adjustment for retirement benefits is as

1. Accounting line item and the amount of stock options charged as expenses

follows:

From April 1, 2019 to March 31, 2020

(Millions of yen)

General and administrative expenses¥31

As of March 31, 2020

(Millions of yen)

Unrecognized past service costs¥ (52)

Unrecognized actuarial gains and losses

6,370

Other

―

Total

¥6,318(7) Pension assets① The percentage of each main category for total pension assets is as follows:
As of March 31, 2020
Stocks

29％

Bonds

28％

Life insurance general account

15％

Other

28％

Total

100％

Note: Included in total pension assets is 10% (compared with 12% in the previous fiscal year) for retirement benefit trusts
established in the corporate pension plan, and 30% (compared with 31% in the previous fiscal year) for retirement benefit
trusts established in the lump-sum retirement plan.

2. Description of stock options / Changes in the size of stock options(1) Description of stock options
2019 Stock Options
Category and number of people to whom stock options are granted

The Bank’s directors (excluding outside directors): 10

Type and number of shares granted as stock options

Common stock: 29,900 shares

Date on which stock options were granted

July 26, 2019

Vesting terms and conditions

Vesting terms and conditions have not been prescribed

Vesting period

Vesting period has not been prescribed

Exercise period

July 27, 2019 to July 26, 2049

Note: Reflecting the five-to-one stock consolidation conducted on the effective date of October 1, 2018.

(2) Changes in the size of stock options
The following describes changes in the size of stock options that existed during the fiscal year ended March 31, 2020. The
number of stock options is converted into the number of shares.

② Method for calculating the expected long-term rate of return on plan assets
To determine the expected long-term rate of return on plan assets, the Bank considers the current and projected allocation of① Number of stock options
2019 Stock Options

pension assets, as well as the current and expected long-term rate of return for the various assets that make up the pension
Stock options which are not yet vested (shares):assets.

As of March 31, 2019(8) Basis for calculating actuarial calculations
Basis for calculating main actuarial calculations (weighted average)
From April 1, 2019 to March 31, 2020

Granted29,900Forfeited–

Discount rate

0.3%

VestedExpected long-term rate of return on plan assets

2.7%

Balance of stock options not vested

Rate of salary increase
Defined benefit corporate pension plan

3.6%

Lump-sum retirement plan

3.5%

–

29,900–Stock options which have already been vested (shares):
As of March 31, 2019–

Vested29,9003. Defined contribution funds

Exercised–

The required contribution for the current consolidated fiscal year under the Bank’s defined contribution pension plan is ¥199 million

Forfeited–

compared with ¥202 million as of the end of the previous fiscal year.

Balance of stock options not exercised

29,900Note: Reflecting the five-to-one stock consolidation conducted on the effective date of October 1, 2018.

② Per share price information
2019 Stock Options
Exercise price (Yen)¥1

Average price per share upon exercise (Yen)–Fair value per share at the grant date (Yen)

1,061

Note: The average price per share upon exercise and the fair value per share at the grant date reflect the five-to-one stock consolidation
conducted on the effective date of October 1, 2018.

THE YAMANASHI CHUO BANK 2020

62

THE YAMANASHI CHUO BANK 2020

63

3. Method for estimating the fair value per share of stock options

2. A reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in the accompanying

During the fiscal year ended March 31, 2020, the fair value per share with respect to the 2019 Stock Options was estimated as

consolidated statements of income is as follows:
As of March 31, 2020

follows:(1) Evaluation technique used to estimate the fair value per share: Black-Scholes method(2) Main numerical and estimation methods
2019 Stock Options
Stock price volatility (Note 1)

31.1％

Projected residual period (Note 2)

2.9 years

Projected cash dividends (Note 3)¥35.00/share

Risk-free interest rate (Note 4)

Normal effective statutory tax rate

30.4%

Valuation allowance

5.0%

Income not taxable for income tax purposes(1.9)%

Expenses not deductible for income tax purposes

0.5%

Other – net

1.3%

Actual effective tax rate

35.3%

(Relating to Asset Retirement Obligations)Not applicable(0.21)％

Notes: 1. Stock price volatility is calculated based on the stock price performance for the period (weekly from the week of August 22, 2016 to theweek of July 22, 2019) that corresponds to the projected residual period.
2. The projected residual period is estimated based on the average period in office of directors (excluding outside directors) who haveretired in the past.
3. Projected cash dividends are based on cash dividend results for the fiscal year ended March 31, 2019. Based on conversion to thenumber of shares after the five-to-one stock consolidation conducted on the effective date of October 1, 2018.
4. The risk-free interest rate is the yield on government bonds for the period that corresponds to the projected residual period.

4. Estimation method for the number of stock options vested(Relating to Investment and Rental Property)
Not applicable(Segment Information by Type of Business)【Segment information】】
Segment information is not shown in these statements, since the banking business is the only reportable segment.

Because it is difficult to reasonably estimate the number of stock options that will be forfeited in the future, the number of stock
options that has actually been forfeited is solely reflected for the stock options that have already been vested.

【Related information】】
From April 1, 2019 to March 31, 2020

(Relating to Tax Effect Accounts)

1. Information for service segments(Millions of yen)

1. The tax effects of significant temporary differences and tax loss carry-forwards which resulted in deferred tax assets andliabilities are as follows:
As of March 31, 2020

(Millions of yen)

Deferred tax assets
Net defined benefit liability¥4,642

Allowance for possible loan losses

2,722

Losses on investment securities

1,295
517

Depreciation
Other

2,144

Subtotal

11,322

Valuation allowance(4,116)

Total deferred tax assets

7,205

Deferred tax liabilities:
Unrealized gains on available-for-sale securities(6,057)

Other(1,778)Loans
Ordinary income from
customers

Securities investment¥17,205¥17,919

Other

Total
¥12,176¥47,301

Note: Instead of the net sales of a non-financial company, ordinary income in gross is indicated.

2. Information for geographic areas(1) Ordinary income
Since the amount classified as ordinary income from external customers in Japan exceeds 90% of ordinary income on the
consolidated statements of income, it has been omitted here.
(2) Tangible fixed assets
Since the amount of tangible fixed assets located in Japan exceeds 90% of the amount of tangible fixed assets on the
consolidated statements of income, it has been omitted here.
3. Information about major customers
Since no ordinary income from specific customers represents more than 10% of ordinary income on the consolidated statements
of income, it has been omitted here.

Total deferred tax liabilities(7,836)【Information about impairment loss of fixed assets by reportable segment】】

Net deferred tax assets (figures in parentheses represent liabilities)¥(631)

Since the Group has only a single reporting segment (banking), disclosure of segments lacks importance and has thus been
omitted here.

THE YAMANASHI CHUO BANK 2020

64

THE YAMANASHI CHUO BANK 202065

【Information about the amortization of goodwill and unamortized balance by reportable segment】】(Per Share Information)

Not applicable

From April 1, 2019 to March 31, 2020

(Yen)

Net assets per share【Information about the gain recognized on negative goodwill by reportable segment】】¥6,183.83

Profit per share

Not applicable

116.43

Diluted profit per share116.13
Notes: 1. The Bank consolidated its shares at a ratio of five shares to one share on the effective date of October 1, 2018.
Per share information is calculated on the assumption that this consolidation of shares took place at the beginningof the previous consolidated fiscal year.
2. The basis for calculating profit per share and diluted profit per share is presented as follows.

【Related-party transactions】】
1. Related-party transactions(1) Transactions with parties related to the company submitting consolidated financial statements① The parent company and major shareholders of the company submitting consolidated financial statements (limited tocompanies, etc.)

From April 1, 2019 to March 31, 2020

(Millions of yen)

Profit per share

Not applicable

Profit attributable to shareholders of the parent② Non-consolidated subsidiaries and related companies, etc. of the company submitting consolidated financial statements
Not applicable¥3,764–

Amount not attributable to owners of common stock
Profit attributable to shareholders of the parent related to common stock

3,764

Average balance of common stock (Thousands of shares)

32,333

Diluted profit per share③ Companies, etc. with the same parent company as the company submitting consolidated financial statements andsubsidiaries, etc. of other related companies of the company submitting consolidated financial statements
Not applicable

Adjustment amount of profit attributable to shareholders of the parent¥–

Increase in the number of common stock (Thousands of shares)

84
84

New share subscription rights (Thousands of shares)④ Related-party transactions involving directors, corporate auditors and major stockholders (individuals only) of the Bank
From April 1, 2019 to March 31, 2020
Relationship

Statutory
auditor

Statutory
auditorName

Toshihito
FuruyaEiichiro
Yamadera

Address－－(Millions of yen)
Votingrights (%)

Paid-in
capitalPosition－

Corporate
auditor of theBank,simultaneously
serving as
legal advisor

0.02

Brother-in-law
of a Director of
the Bank

0.11－

Details of
businessrelationshipTransaction

Lending

Lending

Compensation
for legal
advisory
services

Interest
incomeLegaladvisoryfee paid

Lending

Note: Transaction terms and policies for determining transaction terms
Transaction terms are determined in the same manner as with clients in general.

Transaction Accounting
amountnameYear-endbalance

¥－

Loans

¥96

2

－

－

3

－

－

Lending

0

Loans

174

Interest
income2－－(Important Subsequent Events)
Not applicable(2) Transactions with consolidated subsidiaries and related parties of the company submitting consolidated financial statements
Not applicable
2. Notes regarding parent company or other important related companies
Not applicable(Relating to Business Combinations, etc.)
Not applicable

THE YAMANASHI CHUO BANK 2020

66

THE YAMANASHI CHUO BANK 202067Corporate Data

Board of Directors and Corporate Auditors(as of March 31, 2020)(as of July 1, 2020): ¥15,400 million

Common Stock

Breakdown of Stockholders

Number of Shares :	Authorized 79,600,000 shares
Issued		
32,783,000 shares

Financial institutions 117,730
Securities companies 4,293
Other corporations
62,697
Foreigners
40,454
Individuals and others 101,501

Total

326,675

Number of
Stockholders: 6,290

Stock Listing: First Section of the Tokyo Stock Exchange

Transfer Agent: Mitsubishi UFJ Trust & Banking Corporation

shares36.04%
1.32%
19.19%
12.38%
31.07%* Shares (1 trading unit: 100 shares)
Note: The category “Individuals and others” contains treasury
stock of 9,348 trading units of shares.

ChairmanManaging Directors

Directors

Standing Corporate Auditors

Nakaba Shindo

Yukio Osada
Norihiko Tanaka
Yutaka Fujita
Yoshiaki Furuya

Fumihiko Furuya
Masahiko Yamadera
Michio Masukawa
Riyo Kano
Miki Ichikawa

Akira Omata
Kimihiro Asai

President

Mitsuyoshi Seki
Senior Managing Director

Kazuhiko Kitta

Major Stockholders
Number of shares held
(thousands)

Percentage of
all shares issued (%)

The Master Trust Bank of Japan, Ltd. (Trustee Account)

1,332

4.18

Meiji Yasuda Life Insurance Company

1,209

3.79

The Yamanashi Chuo Bank, Ltd. Employees’ Stockholdings

1,174

3.68

Japan Trustee Services Bank, Ltd. (Trustee Account)

894

2.80

MUFG Bank, Ltd.

716

2.25

Teikyo University

629

1.97

Fukoku Mutual Life Insurance Company

600

1.88

FUJI KYUKO CO., LTD.

531

1.66

Tokio Marine & Nichido Fire Insurance Co., Ltd.

501

1.57

Japan Trustee Services Bank, Ltd. (Trustee Account 5)

466

1.46

8,055

25.29

Name

Total

2,400

Organization(as of July 1, 2020)

Corporate Planning
Board of Directors

ChairmanCredit Screening Division

Financial Markets

International and Treasury Division
Business Promotion Division

Managing Directors(in charge of International Division)

Directors

Business Planningand Control
Department

Non-Standing Director
Advise Report

Operation Administration Division
Operations

May

Jun.

Jul.

Aug.

Sep.

Consultation Sales Division
Western Tokyo Consultation Sales Division

Nomination andRemuneration Advisory
Committee

Trading volume (thousands)

Apr.
2018

Sales Promotion Planning DivisionMarketing

1,0000Management Control Division

Credit Screening

Yamanashi Chuo Bank’s share price (yen)

800

2,000

Corporate
Administration

General Affairs Division

Senior Managing Director

1,200

400
3,000

Planning and
Administration

Deputy President

Tokyo Stock Price Index (TOPIX)

Corporate Planning Division
Personnel Division

President

2,000
1,600

Kouichiro Horiuchi
Yoshiyuki Nagahara
Minako Mizutani

Annual General Meeting of Shareholders

Yamanashi Chuo Bank’s Share Price and Trading Volume on the Tokyo Stock Exchange
2,800

Corporate Auditors

Oct.

Nov.

Dec.

Jan.
2019

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.
2020

Feb.

Systems Administration DivisionMar.

* On October 1, 2018, every five (5) shares were consolidated into one (1) share. This was calculated on the assumption that the consolidation of shares was conducted at the
beginning of the fiscal year ended March 31, 2019.

Central Operations Division
Board of Corporate Auditors
Secretariat

Consolidated Subsidiaries

Tokyo Stock Price Index (TOPIX)
Name

1777.23
Yamanashi Chuo Guarantee
Co., Ltd.
1747.45

1730.89
Yamanashi Chugin Lease Co.,Ltd.
1753.29
Yamanashi Chugin DC Card
Co., Ltd.
1735.35
1817.25Consulting Co., Ltd.
Yamanashi Chugin Management
1646.121667.451494.091567.49

Standing Corporate Auditors
Yamanashi Chuo Bank’s share price (yen)Trading volume (thousands)(Millions of yen)

Yamanashi Chuo
Bank’s share (%)

20

99.8

612.4
Loan guarantees
597.4

66.0

Leasing

Capital

2420
2220
2105
20
2115
20
1995
2042
200
1616
1663
THE YAMANASHI CHUO BANK 2020
68 1410
1386

67.5
87.5

Lines of business

724
1007.8Credit cards 890
858.6
Consulting, economic
research
1008.4795.9
906.6
1017.2

Tokyo Liaison Office

Corporate Auditors
Office of Corporate Auditors

Auditing Division

Auditing

Branches
THE YAMANASHI CHUO BANK 202069

20-8, Marunouchi 1-chome,
Kofu, Yamanashi 400-8601, Japan
Phone: 055-233-2111
URL: https://www.yamanashibank.co.jp/