Annual Report 2021

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 and22.8% 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.
· Dec. 2015: Construction began on the Yamanashi section of

Silk Fabricthe Southern Alps Tunnel (communication route).

Nakatsugawa

Sagamihara· Jan. 2016: Shinagawa Station construction began.
· Nov. 2016: Construction began on the Nagano section of
Osaka· Mar. 2017: Yamanashi Prefecture creates “Linear

Travel time
Shinagawa – Kofu
25 minShinagawa – Nagoya 40 min
Shinagawa – Osaka 67 min

NaraEnvironmental Future City Improvement Policy.”· Apr. 2018: Construction began on the Yamanashi section of
Shipment amount of down quilts ranks third in Japan.

Jewelry

Fruits

Shipment amount of jewelry ranks second in Japan.

Local Industries
in Yamanashi
Prefecture(*) 	Station locations further
west of Nagoya are
undecided.

the Southern Alps Tunnel (mail line).
· Nov. 2019: Construction began on Kanagawa Prefecture
Station (tentative name)

Chubu Odan Expressway
Saku-Komoro
JCT

Shipment amount of jewelry ranks second in Japan.

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

Mineral Water

Yamanashi Maglev Test Line

Nagoyathe Southern Alps Tunnel.

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

Shinagawa

Kofu

Iida

Knit Products

Chuo Expressway

Joshin-Etsu Expressway
Nagasaka JCT – Yachiho IC
Completed “planning stage
assessment” in Apr. 2015

YachihoOkegawaKitamoto IC

Nishi Kanto Expressway
Connected to Kanetsu
Expressway bound for
Saitama and Hanazono

Nagasaka

Ken-O Expressway

FutabaChubu Odan Expressway

Hachioji JCT

Kofu

Shirane

OtsukiTakaosan IC

Minami-Alps
MasuhoChuo Expressway

Rokugo38.8% share of shipment amount ranks first in Japan.

Inden Leather

Rokugo IC – Shimobe Onsen
Hayakawa IC
Opened to traffic on Mar. 10, 2019
Shimobe Onsen Hayakawa IC –Nanbu IC
Opened to traffic
on Aug. 29, 2021
Nanbu IC – Tomizawa IC
Opened to traffic
on Nov. 17, 2019

Fujiyoshida
Nakatomi
ShimobeOnsen
Hayakawa
Minobusan

Subashiri IC

Gotenba IC

SagamiharaAikawa IC
Ebina IC

Shin-Tomei
Expressway

Nanbu

Gotenba JCT

Tomizawa

Tomizawa IC – Shin-Shimizu JCT
Opened to traffic on Mar. 10, 2019
Whole route opened to traffic
on Aug. 29, 2021

Higashifujigoko Road

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

Shin-Shimizu
JCT

Tomei Expressway

THE YAMANASHI CHUO BANK 2021

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

2017

2018

2019

2020

2021

Ordinary Income

55,73654,12052,35344,87849,602

Ordinary Profit

10,001

7,570

7,458

6,726

6,229

Profit Attributable to Shareholders of the Parent

7,282

4,920

4,908

3,764

3,090

Comprehensive Income(15,464)

2,135

6,740

(20,412)22,851Net Assets

216,977

217,311

222,388

199,661

221,439

Total Assets

3,285,408

3,306,502

3,480,808

3,511,412

4,185,672

Net Assets per Share (Yen)

1,277.73

6,430.17

6,652.04

6,183.83

6,849.57

Profit per Share (Yen)

42.95

146.48147.15116.43

96.92

Capital Adequacy Ratio (Domestic Standard, %)

16.82

14.14

13.80

13.22

12.78

Return on Equity (%)

3.25

2.29

2.25

1.80

1.48

Price Earnings Ratio (Times)

11.59

14.95

9.31

6.32

9.48

Cash Flows from Operating Activities(91,511)79,72582,750(23,354)446,423

Corporate Name:

Cash Flows from Investing Activities

245,900(27,367)

124,502(134,180)(62,012)Head Office:Cash Flows from Financing Activities(2,868)(1,783)(1,681)(2,287)(1,117)

260,830

311,403516,974

357,152

740,447

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”

YamanashiTokyo

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, 2021)
The Yamanashi Chuo Bank, Ltd.
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
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.

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 Identification of the Bank’s Materiality (Material Issues)
16 Feature: The Shizuoka-Yamanashi Alliance
18 Initiatives to Enhance Customer Touchpoints
20 Initiatives to Create Common Values
26 Initiatives to Improve Personnel Vitality
27 Increase the Sophistication of the Management and Administration Approach
30 Strengthen CSR Based on the SDGs and ESG Principles
36 Financial Review

37 Consolidated Balance Sheets
39 Consolidated Statements of Income
41 Consolidated Statements of Comprehensive Income
42 Consolidated Statements of Changes in Net Assets
45 Consolidated Statements of Cash Flows
47 Notes to Consolidated Financial Statements
76 Corporate Data
77 Board of Directors and Corporate Auditors
Forward-looking statements
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.

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

2

ROE/
Capital adequacy ratio(Domestic standard)(¥ billion)(¥ billion)

(%)

4,200

8.0

18.0

4,000

15.0
6.0

3,800

12.0

3,600
4.0

Capital adequacy
ratio

9.0

3,400
6.0

3,200

ROE

2.0
3.0

3,000
0.0

2,800
March 31

THE YAMANASHI CHUO BANK 2021

Profit attributable toshareholders of the parent

2017

2018

2019

2020

2021

FY

0.0

2017

2018

2019

2020

THE YAMANASHI CHUO BANK 2021

3

2021

FY

2017

2018

2019

2020

2021

Message from the President

Message from the President

We aim to achievesustainable growth
together with all
our stakeholders byembracing ambitionand empathy with
foresight.

President

Mitsuyoshi Seki

Review of Year 2 of the Medium-Term
Management PlanThe Economy of Yamanashi Prefecture—Our Business Base
General Prefectural Production (fiscal 2018):
Real Growth Rate (fiscal 2018):
Shipment Value of Production in Prefecture(2018):¥3,494 billion
3.6%

Major Products and Their Share in Japanese Market
Products

Numerical control robots

Shipment Value(¥ billion)

279.1

Share
(%)

74.8

Ranking

No. 1

71.7

38.8

No. 1

Hoisting machinery

28.6

31.8

No. 1

Semiconductors / IC measuring instruments

50.9

20.0

No. 2

Mineral water(as of March 31, 2021)

1.8

12.9

13.1

27.3

45.8

28.6

6.7
Yamanashi Chuo Bank
Major banks
Shinkin banks/credit unions
Agricultural cooperatives
Semi-government institutions/othercollective effort by the whole regional community. To this end,

medium-term management plan “Value+ 2022.” During the year,

all the Bank’s officers and employees responded even faster

we took steps toward transforming the Bank.

than before to solve a wide range of issues faced by customers.
These efforts were grounded on customer-first activities based

have a significant impact on not only Japan but also the whole
Loans

51.2

Fiscal 2020 marked the second year of our new, three-year

Meanwhile, the COVID-19 pandemic currently continues to

5.3

Deposits

regional industries that have suffered serious impacts. In
addition, the Bank sought to overcome this impasse through a

Shares in Yamanashi Pref. (%)¥2,584 billion

Concurrently, the Bank strove to maintain and reinvigorateon the 3S Action Guidelines of Smile, Speed and Simple.

world, with no end in sight to the pandemic. Japan’s economy

In fiscal 2020, we embarked on two ambitious initiatives toseemed to have bottomed out at one point due to the positivetransform the Bank itself.

effects of the “Go To Travel” campaign and other programs
7.2
Yamanashi Chuo Bank
Major banks
Shinkin banks/credit unions
Agricultural cooperatives
Semi-government institutions/other

The first initiative is digital transformation (DX). We believeby the Japanese government. However, the number of newthat DX encompasses the creation of new services and

COVID-19 cases in Japan has ebbed and flowed repeatedly, andbusiness models from a customer-first perspective using digital

the outlook has remained uncertain.

technologies. We also believe that it covers efforts to establish

Under these conditions, the Bank worked to provide

competitive advantages through the transformation of existing

extensive financial support to customers experiencing hardshiptasks, organizations, processes, and corporate culture.

through no fault of their own due to the COVID-19 crisis.
THE YAMANASHI CHUO BANK 2021

4

We believe that the Bank has an important duty to promote
THE YAMANASHI CHUO BANK 2021

5

Message from the President

DX across the whole region. This can be accomplished throughthrough the supply of environmental products, services andefforts to create new value by vigorously promoting DX

information.

throughout the Bank, and by giving back the expertise and

The second theme is to strengthen various partnerships andskills we accumulate in the process to the region.

improve regional economic vitality. On this front, we will strive

The second initiative is the Shizuoka-Yamanashi Allianceto revitalize regional society and industries by strengthening

we concluded with Shizuoka Bank on October 28, 2020. The

ties with other banks and partners in industry, academia andoverarching goal of this alliance is to realize the sustainable

government, among other areas. In addition, we will contribute

growth of both banks together with the local communities ofto regional economic development by redoubling our efforts

Yamanashi and Shizuoka Prefectures in any type of businessto actively supply information about Yamanashi’s attractive

environment. We seek to transform ourselves into a bankresources.

that can adapt to any new environment through the specific

The third theme is to realize DX and the digitalization of

measures of the alliance. In the process, the Bank will leverageregional society. For this, we will work to effectively use digital

the alliance to achieve transformation. We refer to this process

technology and transform the Bank itself, along with giving

as “Alliance Transformation (AX).”back our expertise and skills in digital technology to customers.

With DX and AX as our driving force, we will further

President

Through these efforts, we aim to realize the digitalization ofaccelerate the transformation of the Bank itself, while we seek

Mitsuyoshi Seki

regional society as a whole.

to achieve the sustainable growth of the regional economy.

The fourth theme is to create common values throughhigh-quality UI and UX. We will supply various high-quality

Identification of the Bank’s Materiality(Key Issues)

products and services closely tied to communities and basedon customer needs. By doing so, we will provide new value toInitiatives towards the Final Year of theMedium-Term Management Plan

Message to Stakeholders
Businesses and individuals throughout Japan are facing

customers and establish business models that pave the way for
The Bank has identified its materiality (key issues). The Bank

The Bank has adopted Value Creation Bank as its long-term

historical hardships due to the impact of COVID-19. The Bank is

The fifth theme is to build an organization that supports

vision in anticipation of the 150th anniversary of the Bank’s

committed to thoroughly supporting everyone who is working

the growth and success of diverse personnel. We will develop

founding in 2027. Fiscal 2021 is the final year of our three-year

hard without losing hope in these difficult circumstances.

the creation of the Bank’s corporate value.

should address these issues to realize the sustainable growth of
the regional economy and increase its corporate value.
Furthermore, we have adopted six themes within ourhighly specialized employees as part of our efforts to solve

medium-term management plan “Value 2022,” which covers

materiality framework, and we will address these themesissues faced by customers and build workplace environments

the structural reform stage for achieving this vision.

intensively. The six themes are (1) Maintaining a rich naturalthat allow diverse personnel to respect one another andenvironment and passing it on to the future; (2) Strengthening

succeed. Through these efforts, we will foster a corporate

have been seriously affected by COVID-19. In parallel, we will

Guidelines originating with the customer. To make this happen,of various relationships and increase of regional economic

culture that makes work satisfying and rewarding.

demonstrate thorough financial intermediary functions based

it will be important to remember two things as we move

The sixth theme is to strengthen corporate governanceon “the 3S Action Guidelines” of Smile, Speed, and Simple.

forward: our ambition for the Bank and its customers to work

digitalization of regional society; (4) Creation of common value

and compliance. To ensure the soundness and transparency

Doing so will pave the way for fostering our common values,

hand in hand to firmly support the regional economy of thethrough high-quality UI/UX; (5) Creation of an organization thatof management and establish trust with all manner ofsuch as driving the growth of the regional economy and thefuture and our empathy for each other.

supports the growth and active participation of diverse humanstakeholders, we will strive to strengthen governance byBank.

resources; and (6) Strengthening of corporate governance andworking to develop our organizational structure, enhancecompliance.

information disclosure and engage in dialogue withto address the SDGs, which are common global sustainable

Based on the Bank’s mission of region-based operations

stakeholders.

development goals, and accelerate the transformation of theand sound management, which has not changed since its

activity; (3) Realization of digital transformation (DX) andLooking at the first theme, which is to preserve and leave a+

All officers and employees of the Bank are determined toovercome the wide range of hardships caused by the COVID-

We will continue working to help customers in regions that19 crisis together with customers, based on the 3S Action

Looking ahead, we will continue to emphasize the

To do so, in fiscal 2021, we will further strengthen measures

importance of trust and confidence from our customers.

bountiful natural environment to future generations, we will

The Bank will continuously review its materiality in response

Bank itself, along with pursuing DX and AX. Concurrently, we

founding, we will continue to create common values by actively

work to reduce the amount of CO2 emissions from the Bank’s

to factors such as changes in economic conditions. This review

will step up efforts to address the Bank’s materiality. Throughcommunicating with various stakeholders, including regional

activities, with a view to realizing a decarbonized society.

will be reflected in the Bank’s management strategy.

these efforts, we aim to contribute to the development of thesociety, customers, and shareholders, while seeking to realize aregional economy.

sustainable society. We look forward to your continued support

In parallel, we will support the environmental preservation
efforts of the region and help to further improve those efforts

in this endeavor.

THE YAMANASHI CHUO BANK 2021

6

THE YAMANASHI CHUO BANK 2021

7

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

Value Provided to Stakeholders

P. 14–

Business
Environment

Trends in Global Society• Climate change

Materiality(Material Issues)

Maintaining a rich naturalenvironment andpassing it on to the future• Cyber security• Behavioral changes due to
COVID-19 pandemic• Declining birthrate,
aging population, anddecrease in working population• Concentration of population incities, depopulation ofregional centers• Aging and renewal of
lifestyle infrastructure• Low interest rate environmentand deregulation“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.

• Sustainable development of regional
economy• Contribute to the realization ofa sustainable environment and society• Fertile western Tokyo market baseStrengthening ofvarious relationships andincrease ofregional economic activity
Realization ofdigital transformation (DX)and digitalization ofregional society

Trends in Japan andYamanashi

Social Capital

Regional Society• Dominant share in Yamanashi Prefecture• Increased disaster risk
• Digitalization

Management Resources toInvest (Strength)(Input)• Industrial base made possible by richnatural environment

Strengthening ofcorporate governanceand compliance

Basic
Strategies

Create Common Values– Aiming to be a bank that adapts to
new environments –P. 20

Employees• Foster employee fulfillment

Improve Personnel Vitality• Development of professional personnel
capable of offering expertise– Aiming to be a bank where diverse humanresources reach their full potential –P. 26

Financial Capital
Basic
Priorities

Increase the Sophisticationof the Management andAdministration Approach
P. 27

8

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

P. 18• History and tradition from Dai-Ju
National Bank
• Insights and know-how of personnel
with vast experience working on
assignment in other organizations• Stable financial base and risk-taking
capacity

THE YAMANASHI CHUO BANK 2021

Customers– Aiming to be a bank that connects withall customers –• Diverse personnel possessing
high levels of expertiseIntellectual Capital“Value+ 2022”
Enhance Customer Touchpoints

Human Capital

Creation of common value
through high-quality UI/UXCreation of an organizationthat supports the growth andactive participation ofdiverse human resources

Medium-Term
Management Plan

Strengthen CSR Basedon the SDGs and
ESG Principles

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

P. 30

THE YAMANASHI CHUO BANK 2021

9

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
As 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.

1st Stage

2nd Stage

3rd Stage

Value+ 2022

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

Since its foundation, the Yamanashi Chuo Bank Group’s constant mission has been “region-based operations andsound 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.

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 growthBased 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 the SDGs (Sustainable
Development Goals) advocated by the United Nations.
10 May 2019
President Mitsuyoshi Seki

Period of achieving
the long-term vision“Value Creation Bank”

Period of continued
new value creation andachieving a growth trajectory

Key measures[Structural reform stage]

Realize anenvironment for
creating new value[Growth trajectory stage][Continued growth stage]

Realize growth throughvalue creation together
with the community

Become a financial groupthat continues
to create new value◯ Strive to reduce environmental impact

To protect our lush and pristine natural environment, we will implement initiatives toreduce our environmental impact through our business activities, along with supporting customers who are engaged in environmental protection and environmentallyfriendly businesses. Through these 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 of regional
companies and industries by providing a wide range of financial services. At the sametime, as we strive to improve financial literacy to develop the next generation ofleaders, we will work to solve a variety of issues.
◯ Appoint and utilize diverse human resources

By promoting diversity, we will show respect for human rights and individual differences as we strive to enhance the work, family and daily lives of all people, so thatdiverse human resources can reach their full potential.

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

FY2020 Results

FY2021 Targets

Interest on loans¥16.5 billion¥17.5 billion or more

Non-interest revenue¥ 8.4 billion¥ 9.0 billion or more

Net income¥ 2.6 billion¥ 3.5 billion or more

74.74%

Under 80%

OHR (Operating expenses/Core gross business profit)
THE YAMANASHI CHUO BANK 2021

10

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.

Organization of the SDGs Committee
Regional challenges are wide-ranging, making multifaceted, specialized analyses and reviews vital for their solution. Therefore, in order to utilize theknowledge of departments at the headquarters and the network of human resources across boundaries between organizations, the Yamanashi Chuo
Bank Group established the SDGs Committee in April 2021. The committee will discuss and consider various measures to solve regional challenges andaddress the priority promotion items included in its SDGs Declaration, thus contributing to the realization of a sustainable society.

THE YAMANASHI CHUO BANK 2021

11

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.
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SimpleTHE YAMANASHI CHUO BANK 2021

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Identification of the Bank’s Materiality (Material Issues)
The Bank is working to realize a sustainable world and regional society along with a continuous increase in corporate
value by increasing its level of sustainability management. As part of this effort, the Bank has identified materiality (material issues) that it needs to engage with.

Initiatives to increase the level of sustainability management

Identification of the Bank’s Materiality (Material Issues)

The Bank’s Materiality
ESG

Materiality theme

Overview

E

Maintaining a richnatural environment
and passing it on to the
futureThe Bank will promote CO2 reduction initiatives to help achieve decarbonization, while
supporting environmentally conscious
initiatives undertaken by regional societies
through the provision of environmental
products, services, and information· CO2 reduction
to help achieve
decarbonization*1· Realization of nextgeneration clean
energy*1

S

Strengthening ofvarious relationships
and increase of regional
economic activity

We will strengthen relationships with otherbanks and between industry, academia andgovernment, while supporting the revitalization of regional society and industries
through business activities. In addition,
we will contribute to the flourishing ofsustainable regional societies and regional
economic development by communicating
the attractive resources of Yamanashi
Prefecture· Declining birthrate,
aging population, anddecrease in population· Sustainable growth ofregional companies· Regional innovation

Realization of digitaltransformation (DX) anddigitalization of regionalsociety

Lead the digitalization of the whole regionalsociety by transforming the Bank itself withdigital technology and returning this knowhow to local companies· Internal DX*2
· Digitalization of thewhole of regionalsociety*2

Creation of common
value through highquality UI/UX*3

Create customer value and build newservice and business models leading the
Bank to create economic value by providing
high-quality services to meet customers’
needs, rooted in the local community· Changes in customers
banking patterns andneeds· Access to finance· Product and service
quality

Creation of an organization that supports thegrowth and active
participation of diverse
human resources

Develop highly specialized employees andbuild workplace environments that allow
diverse personnel to respect one anotherand succeed, thereby fostering a corporate
culture that makes work satisfying andrewarding· Human resource
development· Diversity and inclusion· Job satisfaction andworkstyle reforms· Mental safety

Strengthening ofcorporate governanceand compliance

Ensure the soundness and transparencyof management and establish trust withall manner of stakeholders by working
to develop our organizational structure,enhance information disclosure andengage in dialogue with stakeholders· Governance andinternal control· Compliance andcorporate ethics· Risk management

The Bank plans to integrate its sustainability-related initiatives with its management strategies using the following steps.

Understanding of SDGs
and declaration of
initiatives

Start of integrated
reporting, ascertaining
the current position

Identification ofmateriality

Guided by our Basic Policy
on CSR, we formulated
the Yamanashi Chuo Bank
Group’s SDGs Declarationand declared our intention towork towards the realizationof a sustainable society

Organized the Bank’s current
value creation process.
Started integrated reporting,and in the process organized
the items that the Bank
should examine going
forward in tackling the SDGs

Identified materiality (material
issues) that will have a major
impact on management if
not resolved, with a view torealizing a sustainable society

Setting targets andintegration withmanagement
In the next medium-term
management plan,
formulated in fiscal 2021
and starting in fiscal 2022,
formulated and implemented
targets, KPIs, and action plans
for the Bank overall and foreach department

Link existing businesses to SDGs by formulating the next medium-term management plan based on the established materiality.

Related issues

Materiality identification process
The Bank has identified its materiality through the process shown below.

Understand issues andidentify candidates

Discuss impact onsociety and business

Extract and identify
the Bank’s materiality

After organizing the main megatrends, identified candidate social
issues that the Bank should address, making reference to various
guidelines such as SASB and opinions from corporate officers

Held internal discussions with top management, corporate officers
involved with CSR and management strategy formulation, andexternal experts. Discussed the impact of each issue on the Bank’sbusiness and the impacts and severity of the Bank’s activities oneach issue, narrowing the candidates down to 21 issues
Based on the results of the internal discussion, formulated a materiality map by weighting the severity of issues from the perspectiveof impact on stakeholders and impacts on the Bank’s business.
Grouped the issues by theme and identified the Bank’s materiality
through discussion in the Board of Directors

Initiatives going forward
The materiality identified this time will be revised as necessary, making reference to opinions and so forth received from stakeholders
going forward.
Under the next medium-term management plan, which starts in April 2022, we will set out a specific policy for engaging with ourmateriality through business and social contribution activities, establish financial and non-financial KPIs for measuring progress and efficacy,
and further promote solutions to social issues through business.
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*1 These items break down “climate change and global warming” from the Bank’s perspective and the regional perspective.
*2 These items break down “digital transformation” from the Bank’s perspective and the regional perspective.
*3 UI: Abbreviation for User Interface. The contact point between customers and the Bank.
UX: Abbreviation for User Experience. New experiences and satisfaction that customers obtain through the use of the Bank’s products and services.
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RelatedSDGs

Feature: The Shizuoka-Yamanashi AllianceFeature: The Shizuoka-Yamanashi AllianceComprehensive business alliance with Shizuoka Bank

(Main alliance measures that have been realized)

To realize our long-term vision, Value Creation Bank, we aim to achieve sustainable growth with the region, and on October 28, 2020 weStart of collaboration with Shizugin TM Securities Co., Ltd. on financial instruments
introduction service (life plan needs)

concluded a comprehensive business alliance (the Shizuoka-Yamanashi Alliance) with Shizuoka Bank, which is based in Shizuoka Prefecture.

On April 20, 2021, Shizuoka Bank Group company Shizugin TM
Securities Co., Ltd. opened a branch inside the Bank’s Head Office.
The Bank has started introductions of customers to Shizugin TM
Securities Co., Ltd., enabling it to respond with an even wider range ofsolutions to regional customers’ asset management needs.

Collaboration in the finance field (banking needs)(1) Personnel exchanges and organization of collaborative projects
In January 2021, we started a personnel exchange in which we dispatched two of the Bank’s employees to Shizuoka Bank with a view to sharing

Purpose of the allianceknow-how in the fields of structure finance and syndicate loans, and to enhance the effectiveness of collaborative initiatives in these fields.

While maintaining their management independence and unique corporate brands and customer bases, both banks will share know-how
and utilize each other’s management resources to achieve their missions in their respective regions, contributing to continuous maintenance and vitalization of local industries.

Through this initiative, we have seen results in organizing collaborative projects in the field of corporate finance, such as structured
finance and syndicate loans.

(2) Started handling FUJIBON privately placed bonds in commemoration of the alliance
From April 20, 2021 we started handling FUJIBON privately placed bonds in commemoration of the alliance.
This product has a feature in which when customers issue a privately placed bond, part of the commissions

Effects and major initiatives of the alliance

本 私 募 債 は 、 当 行 が 発 行 企 業さ ま から
受 け 取 る 私 募 債 発 行 手 数 料 の一 部 を原資として、富士山保護等の取組みを実 施 し て い る 基 金 へ 寄 付 を 行う 社 債で すreceived by the Bank and Shizuoka Bank (0.2% of the issued amount) is donated to the Fujiyama Fund, which isoperated by the NPO National Council on Fujisan World Heritage.

By working quickly on the following items, we aim to increase revenue and reduce expenditures on a cumulative basis over five years, withboth banks realizing synergies totaling over ¥10.0 billion.

Both banks will respond to customers’ desire to contribute to protecting the earth’s environment through

私募債発行は、一定の財務基準を満たした優良企業に限定されるため、企業の信用力向上につながります。

handling this product.

Corporate needs

DX/Shift to cashless operations

Sharing of information on M&A
Sharing of information on business matching
Utilization of Shizuoka Bank’s overseas network and dispatching of bank staff

Joint research for utilization of digital technologies including AI and RPA
Dispatching of bank staff to the Innovation Promotion Office of Shizuoka
Bank and research on new business

Other alliance measures
Corporate needs
Concluded an agreement on M&A business (January 2021)
Concluded an agreement on support for customers’ overseas business (May 2021)

Vitalizing local economy

Banking needs

Life planning needs

Joint creation of syndicate loans
Joint study of structured financeDispatching bank staff to the structured finance department
Joint investment in PE funds

Establishment of a new scheme for securities intermediary throughShizugin TM Securities Co., Ltd.
Establishment of a scheme for securities intermediary in the online field
through Monex Group, Inc.
Development of a fund reserved for the alliance through Commons AssetManagement

Held individual trade talks with business partners (February, March 2021)
Held joint seminars (January 2021)

DX and innovation
Dispatched one of the Bank’s employees to the Shizuoka Bank Innovation Promotion Office(February 2021)

Other
Personnel exchanges between both banks
Online exchange meetings between young employees, online exchange meetings between prospective employees

Vitalizing local economy

Shared activity/BPO

Holding of joint events to promote economic exchange between
Shizuoka and Yamanashi Prefectures
Support of entrepreneurs in the regions through holding TECH BEAT jointly
Conclusion of collaborative arrangement in case of disaster (Mutual use
of mobile branch vehicles, etc.)

Opening of joint stores by utilizing unoccupied space in branches in thestrategic areas of both banks
Examination for standardization and sharing of various IT systems
Examination on the sharing of various clerical work and BPO that utilizes
Shizuoka Bank Group companies

Club activity exchange events

Determination of alliance logo
Representing the aim of the alliance to enable both banks to grow while retaining independencewith the corporate colors of both banks and Mt. Fuji, as well as the diversity of both banks’ employees with a colorful triangle.

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基金への寄付を通じ、地域貢献に積極的に取り組む企業として、社会的地
位や企業イメージの向上につながります。

固定金利、満期一括償還による資金調達が可能となり、財務の安定につながります。

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

Branch administrative staff
Head Office staff

2. Strengthen and Expand the Non-OTC Channel

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
The number of liaisons’ effective consultations with customers has been increasing steadily. In order to increase opportunities to respond to
customers’ financial needs, in fiscal 2021 we want to increase effective consultations with customers by 30% compared to fiscal 2018.

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

branches

Optimize the branch network
Under the medium-term management plan, the Bank seeks to revise the branch functions of 10 full banking branches and reduce thenumber of branch locations by 10 branches. As of the end of March 2021, the Bank had completed the revision of the branch functions of
10 branches and the reduction of the number of branch locations by 8 branches. In addition, the Bank relocated two branches to locations
within government buildings.
In addition, mid-day breaks at branches were introduced at 37 branches.

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).

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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 agri-business• Support for overseas business

Shift to consulting sales based on deep conversations withThe Bank addresses requests for consultations on various matters

We have established an Global Business Support Desk in the Head

• The Yamanashi Chuo Bank startup support loan
“Fine Start”

from business operators in the agri-business field. We provide

Office. The Global Business Support Desk manager acts as a coordi-

In addition, we offer the Yamanashi Chuo Bank startup support

shared value with customers by solving diverse issues.

business planning formulation support for business operators in thenator, providing support according to the stage of each customer's

loan “Fine Start,” with the aim of contributing to regional economic

agri-food sector; financing support such as loans, leases, funds, andoverseas business development. This support includes supplying

revitalization by offering financial support to customers who are

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

subsidies; supply of information on agricultural policy and support

information on various types of business meetings and making

starting new businesses in Yamanashi Prefecture, thereby creating

for deal arrangement, and consulting services.

buyer-matching proposals over the internet.

new businesses and maintaining and expanding employment.

The Bank also provides support for achieving business growth. We

On May 12, 2021, the Bank concluded an Agreement on Overseas

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

conduct activities such as planning and holding individual businessBusiness Support Operations with Shizuoka Bank in accordance withthat is linked to the level of achievement of the startup plan in order

Policy on initiatives for supporting the management of SMEs

meetings, various business matching fairs and other events. We also

the Shizuoka-Yamanashi Alliance. The Bank has taken the opportu-

to boost the business motivation and mindset of business founders

In order to contribute to the prosperity and economic advance-

provide business matching services and introduce specialists whonity of this agreement to dispatch two employees to Shizuoka Bank’s

as they work to grow and expand their new businesses.

ment of the region, the Bank is working to promote community-

can be dispatched to businesses.

overseas sites.

● Financing support for startups/new businesses

customers to realize “comprehensive financial services” and create

Fiscal 2020  122 loans  ¥3,029 million

Additionally, since April 2011, the Bank has operated an

Looking ahead, the Bank will provide even more support to its

Agri-Business School to support business operators who are

customers while working closely with Shizuoka Bank’s six overseas

companies and external institutions as well as external experts, weseeking to conduct agri-business with business sensibility and ansites.

will introduce organizations that are the best suited to solve ourentrepreneurial spirit. The school comprises courses that impart• Offering Yamanashi Chuo Bank privately placed bonds
to support health workers

customers’ management issues. Also, we will work to provide timely

management knowledge in subjects such as finance, human

In July 2020, the Bank started offering privately placed bonds withand appropriate consultations, including proposals for using support

resource development, distribution, production management, anda donation option. When issuing privately placed bonds, the Bank

offerings dependent on the progress of solutions. Furthermore, wemarketing. It offers a practical curriculum that can be put to goodoffers a preferential discount on a portion of the underwriting fees

will endeavor to support smooth provision of funds and manage-use in actual businesses.

it receives from issuing companies. The preferential discount is usedbased finance and make financing smoother.
Specifically, by utilizing the network with each of the Bank’s Groupment improvement, such as by sincerely and appropriately respond-

to fund donations by the issuing companies to funds, foundations,ing to requests from customers for changes to repayment terms.

and other organizations that support health workers engaged in thetreatment of patients with COVID-19 and related activities.

Through these efforts, we will provide support with the aim of● Track record of bond issuance

helping our SME customers resolve their various management issues.

Fiscal 2020  5 bonds  ¥360 million

Support for business startups, new business
cultivation, growth fields, and fund procurement• Support for tourism-related businesses
The Bank is assisting the entire tourism industry by providing smooth• Support for startup and establishment

financing support to tourism-related businesses that have suffered a

The Bank has a Startup and Establishment Support Desk in place.

tremendous impact from the COVID-19 pandemic.

Here, the Bank, its Group companies and external organizations,• Support for healthcare and nursing care businesses

have worked together to establish a comprehensive support
platform for customers in the startup and establishment phase. The
platform provides a wide range of support to such customers, fromsupport for business planning formulation to raising startup funds
and achieving business growth after establishment.
In addition, with the aim of contributing to regional economic revitalization by supporting customers who are starting new businesses
in Yamanashi Prefecture, we collaborate with events such as businessstartup seminars organized by Yamanashi Prefecture, chambers ofcommerce and industry, and other entities. We offer support for

We have established a support platform for the healthcare and nurs-

businesses in many other ways. For example, we support new busi-

ing care fields as a collaborative effort among the Bank, its Groupness development initiatives based on workations at tourism-relatedcompanies and external organizations. Besides financial support,

facilities and help to improve the earning power of tourism-related

such as loans and leases, the platform provides a comprehensive

businesses through consulting on business rehabilitation issues.

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

The Bank offers these types of support in collaboration with tourism

support and information from a dedicated professional consultant inadvisors, external organizations, specialized personnel and otherthe healthcare and nursing care fields at the Head Office to support

experts. Such collaboration allows the Bank to leverage even morefrom specialized organizations. This support addresses all manner ofsophisticated knowledge and information in offering various forms

needs, from starting a business to business improvement, enteringof support.

new fields and business succession.

business planning formulation and the Yamanashi Chuo Bank startup

In parallel with financing support, the Bank helps tourism-relatedMoreover, the Bank conducts activities such as supporting thedevelopment of frameworks that will allow businesses to welcome

support loan to business founders, along with providing support forachieving business growth after establishment.

• Support for environmental businesses

inbound tourists more efficiently when the inbound tourism

For customers who are interested in the power generation business,business recovers. We also assist with the supply of information onsuch as solar power and small hydropower, energy management

marketing strategies.

systems, energy-saving, power conservation, environmental load
reduction management and other areas related to the environment,
we provide management advice from Head Office environmentrelated field experts, as well as business matching with facility
operators and consultants.

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Initiatives to Create Common Values

Activities for regional revitalization

Business matching• Matching the universities’ technology seeds withcompanies’ needs

Participation in regional development such as
regional revitalization projects

The Bank provides business matching services to customers,

Initiatives to Create Common Values• Regional revitalization through the Yamanashi Chuo
Bank Regional Revitalization Fundwith the view to encouraging more people to adopt dual residence

The Bank established the Yamanashi Chuo Bank Regionaland move to and live in Yamanashi Prefecture.

Going forward, the Bank will continue to implement measures,

Revitalization Fund in December 2015 in order to contribute toInitiatives to support industry throughcooperation with industrial, government, andacademic institutions

particularly those in the manufacturing sector. Such activity includes• Activities in collaboration with regional communities

the prosperity of the local community and the revitalization of thedisseminating information about the technology seeds held by the

Aiming to strengthen mutual partnerships targeting regional

local economy by providing grants to organizations and individuals

University of Yamanashi and Yamanashi Gakuin University, as welleconomic development, the Bank has concluded partnershipengaging in efforts that contribute to regional revitalization.

as efforts by University of Yamanashi Guest Social Collaborationagreements with local governments in Yamanashi Prefecture.

Coordinators to match technology seeds with companies’ needs.

Under these agreements, the Bank is working in collaboration withfoundation in March 2016, the fund has been offering grants to

The Bank has concluded agreements on comprehensive partner-

partnering local governments to revitalize agriculture, commercestartups as a public interest purpose business. Through fiscal 2020,

ships with each of the following universities: the University ofand industry, promote relocation to and residence in Yamanashi

aid has been offered to a total of 280 businesses.

Yamanashi, Yamanashi Prefectural University, Yamanashi Gakuin• Business matching through bank-sponsoredbusiness events

Prefecture, and promote tourism and town development.
In addition, the Bank has concluded the “Partnership Agreement

The Bank introduces customers to ideal business partners, together
with offering consulting support, to solve various management

regarding Regional Revitalization through the Use of Vacant Houses,”issues they face. Support activities include helping customers towith Koshu City and a real estate information website operator, andexpand sales channels, reduce costs, and improve productivity.
In supporting the expansion of sales channels, as part of measures
set forth in the Shizuoka-Yamanashi Alliance, the Bank holds• Collaboration with universities

Since transitioning to become a public interest incorporated

University, and Yamanashi Gakuin Junior College.

Going forward, the Bank will continue to work to revitalize the

The Bank publishes “Direct News on Business Opportunities

region by offering grants.

Originating from the University of Yamanashi” and Yamanashi
Gakuin University’s “Business Navigation,” both of which are reports

is working to solve regional issues, including supporting various• Encouraging people to move to and live in
Yamanashi Prefecture

measures aimed at addressing the problem of unoccupied houses

The Bank has concluded the “Partnership Agreement on Attracting

the Bank has dispatched an employee to serve as a Community

in Koshu City.

and Retaining a Resident Population” with Yamanashi Prefecture.

Collaboration Coordinator at the University of Yamanashi.

To encourage residents of the Tokyo metropolitan area to establish

Moreover, the Bank concluded an agreement on partnership andthat present the research activities of each university. In addition,individual business luncheons in which major supermarkets andMoreover, as an initiative extending beyond the prefectural bor-

expressway service and parking area businesses tenants in bothder, the Bank concluded the Partnership Agreement on Promoting

dual residence and move to and live in Yamanashi Prefecture,

cooperation with the Platform of University Intellectual Property

Shizuoka and Yamanashi Prefectures attend as buyers.

Tourism in the Fuji-Hakone-Izu Region with The Bank of Yokohama,the Bank has set up “Move-to-Yamanashi Desks” in its branches in(PUiP). In these and other ways, the Bank is implementing mea-

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

Tokyo and Kanagawa Prefecture. “Move-to-Yamanashi Advisors”

sures that will pave the way for regional economic revitalization

can help them to reduce costs such as fuel andconducted regional economic revitalization activities encompassing

have been appointed by Yamanashi Prefecture. In this role, theyand promote regional development.

communications costs, enhance productivity

an expansive area. One activity was concluding partnership agree-

provide information on Yamanashi Prefecture, along with fielding

using cloud services, and so forth.

ments with Central Nippon Expressway Company Limited (NEXCO)

the inquiries of people interested in relocating to Yamanashi

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

Prefecture and forwarding these inquiries to the Yamanashi Living

Odan Expressway.

Support Center.

Also, the Bank introduces customers to business partners who

In addition, the Bank provides customers with
the B-Line business matching site covering an

In addition, the Bank was selected as a partner in the Ministry of

expansive geographic area.

Moreover, the Bank is helping to spread

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

the word about the attractiveness oflished the Yamanashi PPP/PFI Regional Platform with Yamanashi

Yamanashi Prefecture. The Bank distributes

Prefecture, and is supporting town development and efficientpromotional videos on municipalities inadministrative and fiscal management through private-public

Yamanashi Prefecture via a content distribu-

partnerships.

tion system installed in branches in Tokyo
installed special document stands to hold• University of Yamanashi Guest Social
Collaboration Coordinators

promotional leaflets on municipalities in

The Bank is working to revitalize the regional economy by creatingand Kanagawa Prefecture. We have also

• Achievements in support for management improvement(April 2020 to March 2021)

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

1,688

Of which, those receiving management improvement
support: a91

Yamanashi Prefecture.

and finding promising projects through industry-academia

Information on dual

collaboration. To this end, the Bank takes steps such as matching

residence and mov-the technology seeds held by universities with the needs

ing to and living inof companies.
As of March 31, 2021, the University of Yamanashi had appointed

Yamanashi Prefectureis also published on the Bank’s website and FUJI_NOTE, a special

97 Bank employees as “University of Yamanashi Guest Social

informational website.

Collaboration Coordinators.” In this role, these employees serve as

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

9Of which, those drawing up reconstruction plans: c

65

Additionally, the Bank offers Municipality Partnership Housing

Percentage receiving management improvement support: (a/A)

5.4%

Loan products for 19 municipalities, in addition to supplying housing

Percentage upgraded: (b/a)

9.9%loans dedicated to relocation. The Municipality Partnership Housing

Percentage drawing up reconstruction plans: (c/a)

74.1%

liaisons between industry and academia.

Loan products are linked to subsidies established by municipalities
to encourage inbound migration. These loans are offered with theaim of developing an environment to welcome more people seeking to move to and live in Yamanashi Prefecture.

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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 withthem after sales, we are promoting the use of this tool that has

In anticipation of the continuing aging of society, the Bank will

excellent visibility as well as holding asset management seminars

continue to provide various services so that it can meet a wide range

and investment briefings as needed.

of needs of not only elderly customers as a matter of course, but also
their family members.

• Initiatives to develop personnel

Remodeling and relocation

Asset succession

Persons in their 50s

Persons in their 60s

Persons in their 70s and 80s or older

have passed the Bank’s internal qualification examination to makeLifesecurity

sure that they are able to properly respond to customers’ wishes. In
Parents

addition to personnel development through such a sales qualification system, in order to provide high-quality consulting proposals

Children (grandchildren)• Customer-based consulting

Assetbuilding

Investment trust
accumulation
iDeCo

Life insurance
Assetmanage- Foreign currency
deposits
ment
Bonds

Asset
succession

Life insurance(whole life insurance, etc.)
Annual gift
trustsGuardian
supportdeposits

Proposals for successful inheritancemeasures
Testamentary
trustsInheritance trusts
Annual gift trusts

Assetmanagement
serviceLifesecurity(investment trusts,
foreign currency
deposits, bonds)

Inherited
funds
time deposit
plan

Strengthen sales structure throughredeployment of human resources

BPI in branch operations• Started automatic reading of data on financial results (itemized

Rationalize and increase efficiency ofreception operations

BPI in Head Office operations• Preparation services for transaction slips featuring
QR codesStreamline organization and operations

account statements) using AI-OCR

We provide a service that generates a slip with a QR code when a• Automate operations using RPA

customer enters the type of activity (deposit/withdrawal), account

The Bank introduced Robotic Process Automation (RPA) in April

name, account number, amount, description, and other details

2019, and has been using RPA to automate operations.

on the Yamanashi Chuo Bank website. If the customer prints out

By March 2021, we had developed an RPA robot for 50 tasks,

the slip with the QR code, affixes their notification stamp in casecentered on data aggregation and data entry tasks, and reducedof withdrawal, and brings it to a branch, they are able to conduct

working hours by 8,591 hours per year.
Looking ahead, the Bank will continue to expand businesstheir transaction more smoothly.

We work closely with our customers according to their stage inIncrease labor productivity

Decline ofcognitivefunctions

InheritancetrustsSenior minding
service

as a Certified Skilled Professional of Financial Planning (FP), a national

Investment trusts

Reversemortgages
Dementia
insurance

based on broad financial knowledge, we are promoting certification
qualification, among our sales personnel.

Increase customer convenience

Nursing care for and monitoring of parents

The Bank limits personnel who sell financial products to those who

process automation using RPA to automate operations, in order tolife and propose appropriate solutions for both their potential andstreamline operations further.

• Expansion of functions of the in-branch-only tablet“Smile One”

explicit needs. Through these efforts, the numbers of policyholders
and investment trust owners of accumulation-type products such as

BPI in operations with acommon platform

In order to further enhance convenience for customers andperiodic investment plans for investment trusts and level premium

improve administrative efficiency, we started accepting applica-

insurance have shown an increasing trend year by year, especially fortions for housing loans and other loan products using “Smile One”

customers in their asset building years.

Systemize and adopt paperless operations

tablets, which are available only in branches.

• Expanded paperless operations through digitalization, such as for

As a result, customers are now able to conduct their transactions

regulations for various types of deposits, etc.

more smoothly than they did before.

• Started automatic seal registration by using seal scanners (turned

Going forward, we will continue to increase the number of tasks

seal sheets into paperless work)that the “Smile One” tablet can process.

• Shifted to paperless operations through digitization of certificatesof receipt

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

• Adopted paperless processing for slips related to the receipt
of applications for business loans using the new loan support

By rationalizing and increasing the efficiency of back-office operations

systemat branches, we have been striving on a daily basis to establish a• Adopted paperless processing for stored documents concerning

system capable of handling applications and consultations frombranch screening of individual loans

customers. In fiscal 2020, we addressed the following operations.

• Expanded paperless operations through digitalization of various• Discontinued certain reporting and system registration tasks intypes of internal documents by using groupware

connection with the start of operation of a new loan support system
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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

lfillment
A sense of fu

Assignment
to outsideorganizations

and personal

growthBecomean organization where
diverse personnel
shine

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

spirited corporate culture.

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

Starting in May 2020, we introduced a

Increase the Sophistication of the Management andAdministration Approach• Employee (eNPS) questionnaire surveys

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

At the Bank, we have been working to strengthen the profit and+risk management system utilizing an RAF as a part of the “Valuesupervision of management. For example, the Bank has appointed

2022” medium-term management plan. To build the RAF, we havethree Outside Directors to participate in meetings of the Board ofbeen conducting discussions in the ALM Committee and other

Directors, both of whom are independent of business execution.
Moreover, the Bank has set up a Nomination and Remuneration

meetings.

Advisory Committee as an advisory body to the Board of Directors.

Corporate governanceThis committee was formed to ensure further impartiality, transparency and objectivity in the decision-making process pertaining to

Guided by its social responsibility as a banking institution and its

the appointment and dismissal of members of the management

public service mission in that role, the Yamanashi Chuo Bank aims

team (managing directors and above) and the nomination andto secure the trust of various stakeholders, including customers,

remuneration of directors, as well as related matters.

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

As a part of reforming the organizational culture, we are conducting employee questionnaire surveys to measure employee loyalty(eNPS) and to create a work environment where diversity can betaken advantage of.

The Board of Corporate Auditors determines audit policies, audit

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

plans, audit methods and related matters, along with auditing

ing transparency of management, in conjunction with contributing

the business execution of the Directors from an independent

to the prosperity of the regional community and the development

standpoint from the Board of Directors.

of its economy.

The Bank also has a Board of Managing Directors, Compliance
Committee and Risk Management Committee. The Board of

2. Develop Specialist Human Resources (Professionals)

Managing Directors discusses and passes resolutions on important

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 and sophisticated.

Support the development of young
employees and bolster the OJT system

2012 we assigned 50 employees to do work stints at other compa-• Introduction of “Y-Support” individual guidance training

nies, centered on local industries.

As a measure for developing young employees and strengthening

In order to make full use of the specialized knowledge andthe OJT function, from fiscal 2020 we have changed our training

experience gained by employees who have returned to the com-method from the conventional “mass group” training to “individual

pany following the completion of an outside work assignment,

guidance” training with small numbers of participants. Flexible

we assign such employees to work in a Head Office department

guidance is provided. For example, we can offer guidance tailored tothat supports client companies and regional revitalization, or in

the skill level of participants and can provide training whenever it’s

branches where they can make use of their experience.

policies approved by the Board of Directors. The Compliance
Committee discusses and monitors the implementation ofBoard of Directors

measures to develop and establish a compliance system. The Risk

Board of Corporate Auditors
Standing Corporate Auditors
Corporate Auditors

Independent
Auditors

Non-Standing
Directors

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

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

At present, we continue to assign employees to work at outsideneeded.

business execution in accordance with the basic management

General Meeting of Shareholders

judgments about companies based on having learned the nuancesand know-how of various industries, over the five years from fiscal

matters pertaining to the Bank’s overall business management andStructure of the internal control systemsuch as credit guarantees, leasing, credit cards and consulting

companies at a pace of two or three individuals every year.

Assign employees to work at outsidecompanies and organizations

services. These companies are managed in an integrated manner
Advise and report

Auditing Division• Track record of assigning employees to work at
outside companies, etc. and description of work after
completion of assignments

Nomination andRemuneration Advisory
Committee

as part of the Yamanashi Chuo Bank Group.

Compliance Committee
Risk Management
Committee

Head Office Divisions
All Branches

Group Companies

With the aim of improving our employees’ ability to make good
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Increase the Sophistication of the Management and Administration Approach

Risk management measures

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

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Strengthen CSR Based on the SDGs and ESG Principles

Strengthen CSR Based on the SDGs and ESG Principles

1. A
 ctivities to Contribute to the Regional Community

investment themes cover three categories:• Participation in Mt. Fuji Innovation Camp

Activities to contribute to the regional
community for customers(1) Secure food, clothing and shelter;

Mt. Fuji Innovation Camp is a startup festival that provides hands-on(2) Improve quality of life; and (3) Address

support for entrepreneurs and the creation of new businesses.

environmental issues. Therefore, throughParticipants bring business plans that they wish to realize to theinvestment in this fund, customers canevent, receive advice and mentoring from specialists in various

indirectly participate in activities to achieve

industries, and brush up their plans. On the event’s final day, thethe SDGs.

participants announce their plans as part of the Innovative Business

responsible for the future of their regions and businesses engagedin activities to improve their corporate value and enhance theircompetitiveness in accordance with the 17 SDGs. By doing so, the• Addressing the ESG Regional Financial Promotion
Programinvestment fund aims to strengthen regional industrial capacity,
maintain and expand employment, and achieve other priorities that

The Ministry of the Environment has certified the Bank as a support

will lay the groundwork for the sustainable development of regional

body of the “ESG Regional Financial Promotion Program for 2020,”

society.

which is a program the ministry implements. The Bank has workedon the “Project to Create a Brand for CO2-free Agricultural Products• Initiatives using grants

Using Tomatoes and Other Agricultural Residue, Pruned Fruit TreeIn collaboration with the city of Fuefuki, the Bank has provided

Branches, and Other Material for Fuel.”

support to FISH & PET ISHIHARA for its activities utilizing the Regional
Economic Circulation Creation Project Grants of the Ministry ofInternal Affairs and Communications. The Bank has issued a loan tothis company as an ESG regional finance initiative.

Plan Contest. In 2020, the camp was held
over a period of three days.

• SDGs consulting

Through its sponsorship of Mt. Fuji

The Bank, as part of ESG finance activities, offers SDGs consulting soInnovation Camp, the Bank will cooperatethat it can contribute to the sustainable growth of companies and towith efforts to drive the economic

regional development.

revitalization of Yamanashi Prefecture

In order to build a sustainable regional economy, it is crucial forand the creation of new businesses in thethe entire region to strive to achieve the SDGs. Considering its duty

prefecture.

as a regional bank, the Bank believes that it is essential to encourage
numerous companies to engage in the SDGs and develop theregional economy.
Through SDGs consulting, the Bank fulfills a wide range of needsof companies, including setting targets through backcasting,formulating SDGs declarations, selecting materiality (key issues), support for preparing booklets, and help with publishing information on
websites.

• Offering Yamanashi Chuo Bank’s SDGs Support Loans

Additionally, the Bank holds study sessions on SDGs for employ-

In February 2021, the Bank started offering Yamanashi Chuo Bank’s
SDGs Support Loans. These loans are available to companies that

ees and managers of companies to increase the effectiveness ofare actively implementing measures to contribute to achieving

SDGs measures. In these study sessions, participants develop an• Holding the Local SDGs and ESG Regional FinanceSeminarawareness of the current state of the world and what all of us can do

The Local SDGs and ESG Regional Finance Seminar was held as a

to make the world a better place. Through these and other activities,

collaboration among the Bank, Yamanashi Prefecture, and the Kanto

participants develop a full awareness of the need for activities toRegional Environment Office of the Ministry of the Environment.

address issues such as the micro-plastics problem, a decarbonized

The purpose of the seminar was to encourage various entities suchsociety, and gender equality.

as government, financial firms, and non-financial companies to

the SDGs. Through the supply of this loan product, we will fulfill a• Offering Yamanashi Chuo Bank’s Privately Placed SDGs
Bonds with a donation option

diverse array of financing needs for customers. Concurrently, we will
actively support the creation of a sustainable regional society and

In February 2021, the Bank started offering Yamanashi Chuo Bank’s

community contribution activities.

Privately Placed SDGs Bonds. These privately placed bonds may be
issued by companies that are actively implementing measures that
contribute to achieving the SDGs and that meet strict qualification
requirements.
In addition, the Bank offers preferential
rates on the underwriting commissions it
charges when these privately placed bonds

The Bank will conduct its consulting activities to lay a foundationconsider the meaning of and organize their thoughts and ideas onthat will allow members of the community to voluntarily carry

local SDGs and ESG regional finance in Yamanashi Prefecture. Theyout measures to achieve the SDGs. In the process, we will provide

did so by, for example, sharing examples of best practices, in order tosupport so that community members can take ownership for

promote local SDGs and ESG activities in Yamanashi Prefecture.

implementing these measures.

are issued. This allows the companies issuing the privately placed bonds to donate
the difference between the designatedand preferential commissions to organizations and other entities that implement
measures that contribute to the SDGs.

• Operating the Yamanashi Chou Bank SDGs Investment
Limited Partnership• Offering a Global Impact Investment Fund(nickname: Better World)

The Bank operates the Yamanashi Chuo Bank SDGs Investment

The Global Impact Investment Fund (nickname: Better World) is a

Limited Partnership, an investment fund that invests in businesses

fund that invests in companies selected mainly from among global

in every life stage, from the stages of startup and establishment toequities that have innovative technologies and business models

the stages of growth, business improvement and rehabilitation,

and are working to solve social issues (social impact). The fund’s

and business succession. The investment fund supports businesses

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Strengthen CSR Based on the SDGs and ESG Principles

2. 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

Under our Environmental Policy, the Bank will promote environ-• Donation of vegetables harvested through preservation
and rehabilitation projects in socioecologicallandscapes (satochi-satoyama areas) to
FoodBank YAMANASHI

mental conservation activities more proactively and continuously

The Group has been promoting the preservation of socioecologicalthan ever before.

landscapes (satochi-satoyama areas), which are natural habitats

serious, as a company rooted in the region, we believe that it isimportant for us to proactively address environmental problems andcontribute to the creation of a sustainable local society.

where human activities are undertaken in harmony with nature,

Yamanashi Chuo Bank Environmental Policy

since August 2011. To pass on these landscapes to future genera-

The Yamanashi Chuo Bank is a regional bank that operates

tions, the Bank has named a plot of abandoned farmland in Chuo

principally in a region blessed with one of Japan’s most pictur-

City, Yamanashi Prefecture as “Yamanashi Chuo Bank Fureai-no-esque and bountiful natural environments. As such, the Bank

Satoyama.” The Bank is working to rehabilitate the land and growis strongly committed to protecting the global environment.

various vegetables on the site with the advice of local farmers and

The Bank believes that activities to tackle environmental prob-

forestry cooperative members. In addition, the Bank is tending tolems are the foundation of its corporate social responsibilities

an abandoned forest next to the site by conducting tree-planting(CSR). The Bank complies with environmental laws and regula-

activities. To date, the Bank has organized and held 49 activities with

tions, along with accurately monitoring the impact of its

the participation of a total of 3,061 people comprising executives,

business activities on the environment. Concurrently, the Bank

employees, and their family members.

works to actively and continuously implement environmental

Strengthen CSR Based on the SDGs and ESG Principles• Participation in the Yamanashi Clean Campaign and
Eco-Drive Movement
The Group participates in the Yamanashi Clean Campaign and Eco-

• Received the award for distinguished person forregional environmental preservation from
the Ministry of the Environment

Drive Movement, which are environmental beautification programs

The Bank has received the award for distinguished person for

led by Yamanashi Prefecture. The entire Bank is working as one toregional environmental preservation for 2020 from the Ministry of

conduct environmental beautification and preservation activities.

the Environment. The award recognizes the Bank as an organization

For example, we are conducting cleanup activities of public facilities

that has made distinguished achievements over many years tosuch as roads and parks around our branches, and implementing

promote regional environmental preservation.

environmentally friendly driving practices. In the 2020 Yamanashi

The Bank was evaluated positively for continuously carrying out

Clean Campaign, we conducted cleanup activities in 451 locations

environmental preservation and beautification activities based onwith the participation of 2,281 people. The Eco-Drive Movement

its Environmental Policy. These activities include the preservation of

involved the participation of 2,329 employees and 551 Bank-ownedsocioecological landscapes (satochi-satoyama areas), participation

vehicles.

in the Yamanashi Clean Campaign and Eco-Drive Movement, which
are led by Yamanashi Prefecture, and cleanup activities on Mt. Fuji.

• Deployment of fuel-cell vehicles

On November 1, 2020, the Bank was presented with a letter ofIn order to help prevent global warming, we are actively deploying

commendation from Minister of the Environment Shinjiro Koizumi

hybrid vehicles and other fuel-efficient vehicles into our fleet of busi-

via Vice Governor of Yamanashi Prefecture Kazunori Wakabayashi atness vehicles. We have also deployed two MIRAI fuel-cell vehicles

the Environmental Forum in Yamanashi.

(FCV). The MIRAI FCV has been lauded as the “ultimate eco car”

The Group will continue to help to create a sustainable society.

because it does not emit any carbon dioxide or exhaust emissions
when it is driven.

In fiscal 2020, the Bank donated vegetables (sweet potatoes, taro,

protection activities.

and potatoes) it harvested to FoodBank YAMANASHI, a certified
specified nonprofit corporation. The vegetables were donated to

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

support wholesome daily lives in the community amid the COVID-19

promoting the conservation of resources and energy, with acrisis.

view to harmonizing its business activities with the environment as a financial institution.
2. The Bank will strive to help improve the regional community environment through the supply of financial products,• Installation of solar power generation systems

services, information and so forth.

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

3. Every executive and employee will increase their

Branch, Ogasahara Branch, and Showa Branch.

understanding of environmental problems, and actively

Moreover, the Bank has equipped the parking lot of the Saruhashi

implement environmental protection activities in the

Branch with lights that run on solar and wind power.

regional community.

• Donation of recycled toilet paper to 14 special-needs
schools in Yamanashi Prefecture
The Bank, as part of efforts to contribute to regional society, donatedrecycled toilet paper (5,000 rolls) to 14 special-needs schools in
Yamanashi Prefecture. The toilet paper was produced from recycled
paper documents in the Bank. This donation of recycled toilet paper
was undertaken to foster an interest in environmental issues, suchas global warming, amongchildren.
(Yamanashi Prefecture’s
Superintendent of Educationis pictured on the right ofthis photo.)

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Strengthen CSR Based on the SDGs and ESG Principles

3. 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

This system is the first of its kind to be installed by a financial• Activities to promote sports

institution headquartered in Yamanashi Prefecture.

The Bank has a women’s volleyball team that has delivered a firstrate performance on the national stage since it was formed. In order• Holding Yamanashi Chuo Bank lectures

to popularize volleyball and improve volleyball skills in Yamanashi

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

Prefecture, the Bank holds the “Fureai Volleyball Workshop” andand one way we do this is by holding lectures on current topics.

the “Sawayaka Kids’ Volleyball Workshop.” The Bank also holds the

In fiscal 2021, the Bank held Yamanashi Chuo Bank Web lectures.

Yamanashi Chuo Bank Cup Volleyball Tournament for Mothers in

To prevent the spread of COVID-19, the program switched to an

Yamanashi Prefecture.

online format where video lectures were
uploaded to the Bank’s website.

• Transaction statements issued in braille

In addition, in order to help people better• Installation of desktop-type conversation support
equipment

The Bank issues statements concerning customers’ deposit transac-

understand the Bank, prior to lectures thetions (ordinary deposits, current accounts, etc.) in braille for thoseBank president takes a few minutes to

who require it.

explain the Bank’s financial results and future

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 withmanagement strategies and policies.

communicate smoothly with branch staff. These devices work by

braille for the customer’s name and for “Yamanashi Chuo Bank” onconverting the branch staffer’s voice into a form that is easier forthe envelope.

• Yamanashi Chuo Bank Financial Museum

listeners to hear. These devices are available at the Head Office and• Lobby exhibits

The Yamanashi Chuo Bank Financial Museum presents many dif-certain other branches.

The Head Office lobby and the lobbies of branches are used as spots

ferent aspects of the histories of currency and finance in Japan. The

for local residents to engage in cultural activities and for showcasing

museum has permanent displays of approximately 2,000 articles of

their works of art.

currency, highlighted by its collection of Koshu-kin gold coins, andIn November 2020, the “My Pride Exhibition 2020—13th

Japan’s first passbook. It also holds planned exhibits and other events

Yamanashi Prefectural High Schools Student Art Exhibition” was held

as appropriate. Additionally, the museum has set up a new special

at 40 of the Bank’s branches. The exhibits featured paintings and cal-display corner featuring Eiichi Shibusawa, who was involved in theligraphy produced by students from 19 high schools in Yamanashi

establishment of Dai-Ju National Bank, the predecessor of the Bank.

Prefecture.

The museum also hosts off-campus learning programs for• Barrier-free branches

elementary school, junior high school and other students, and

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

dispatches instructors to schools for special workshops. The

facilities and buildings to ensure that all customers, including thosemuseum is made avail-with physical disabilities and elderly customers, are able to reliably

able to members of theand safely use our branches. Examples include the installation ofcommunity as a lifelong

priority parking spaces for people with disabilities and access ramps

learning facility.

to branch entrances.

• Activities to provide financial education• Participation in local events

The Bank conducts activities such as hosting workplace experience

In order to deepen connections with local residents, we actively

activities, conducting special workshops, and offering financial

participate in and support local festivals and events held with thecourses at universities in Yamanashi Prefecture. Moreover, the Bankaim of revitalizing the region.

• 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
and how the procedures will be handled, thereby ensuring that thebranch visit is smooth and successful.

• Assignment of dementia supporters
The Bank strives to further improve services by showing consider-holds the Economics Koshien Yamanashi Tournament for senioration and paying attention to all types of customers, and to build

high school students (The event has so far been held ten times.). The

a community friendly to seniors with dementia and other people

tenth event waswith special needs. As part of these efforts, the Bank has assigned

held in an online

dementia supporters to all branches. The Ministry of Health, Labour

format.

and Welfare recommends that businesses have dementia supporters
on-site.

THE YAMANASHI CHUO BANK 2021

34

THE YAMANASHI CHUO BANK 2021

35

Financial Review(on a consolidated basis)

Overview of Financial Position

Cash Flows

The Bank’s financial position as of March 31, 2021 was as follows. Deposits
stood at ¥3,389.2 billion as of March 31, 2021, up ¥412.6 billion from ayear earlier due to increases in individual, corporate and government funddeposits. Total deposits, including negotiable certificates of de-posit (NCDs),rose ¥404.0 billion from a year ago to ¥3,437.5 billion as of the fiscal year-end.
Loans and bills discounted increased by ¥184.5 billion from a year earlier
to ¥1,986.1 billion as of the fiscal year-end. This increase was mainly due toincreases in loans to small- and medium-sized enterprises and loans to individuals. Securities stood at ¥1,309.6 billion as of the fiscal year-end, up ¥86.1
billion from a year ago. This increase was due to the increase in municipal
and corporate bonds, despite the decline in investment trusts.

Cash flows from operating activities
Net cash provided by operating activities amounted to ¥446.4 billion(compared with a net outflow of ¥23.3 billion in the previous year). The main
contributing factors were a net increase in deposits of ¥404.0 billion and a
net increase in borrowed money of ¥253.3 billion, which were partly offset
by a net increase in loans and bills discounted of ¥184.5 billion and a net
decrease in payables under securities lending transactions of ¥23.1 billion.

Cash flows from investing activities
Net cash used in investing activities totaled ¥62.0 billion (compared with a
net outflow of ¥134.1 billion in the previous year). The main use of cash waspurchase of investment securities of ¥248.5 billion, which was partly offset byproceeds from sales and redemption of investment securities of ¥183.6 billion.

Overview of Operating Results
In terms of operating results for the fiscal year ended March 31, 2021, interest
income (the balance of interest income and expenses) in-creased by ¥890
million year on year, mainly reflecting an increase in interest on loans andbills discounted, despite 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 com-mission income and expenses)
increased by ¥671 million year on year, mainly due to increases in commission
revenue related to deposit and lending operations and commission revenue
from securities-related operations reflecting sales of investment trusts andother products, despite a decline in commission revenue from agency operations through sales of insurance and other products. Other operating income(the balance of other operating income and expenses) declined by ¥1,530
million year on year, mainly reflecting a decrease in Japanese government
bonds and other bond transactions. Credit-related expenses de-creasedby ¥64 million year on year. Equity share and similar transactions declinedby ¥716 million year on year. As a result, ordinary profit decreased by ¥496
million year on year to ¥6,229 million.
The balance of extraordinary income and losses improved by ¥73 million
year on year. Total income taxes rose by ¥272 million year on year. As a resultof the above, profit attributable to shareholders of the parent was down by¥674 million year on year to ¥3,090 million.
From the fiscal year ended March 31, 2021, the Bank has revised thepresentation method of its consolidated financial statements. Accordingly,
financial results for the previous fiscal year have been analyzed based on therestated figures.

Cash flow from financing activities
Net cash used in financing activities was ¥1.1 billion (compared with a
net outflow of ¥2.2 billion in the previous year). Cash was used mainly for
dividends paid of ¥1.1 billion.
As a result, cash and cash equivalents at the end of the fiscal year came to¥740.4 billion (up ¥383.2 billion from the previous year).

Analysis and Discussion of Operating Results
The Bank’s financial position as of March 31, 2021 was as follows. Total
deposits including negotiable certificates of deposit (NCDs) increased by¥404.0 billion from a year earlier, and loans and bills discounted increasedby ¥184.5 billion from a year earlier, as both performed favorably. Securities
increased by ¥86.1 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.

【Consolidated Financial Statements】】①【Consolidated Balance Sheets】】
Millions of Yen
End of FY2019(March 31, 2020)

OHR

Capital adequacy ratio

(%)

(%)

0.8

20.0

15.0

0.6

80.0

¥ 357,267¥ 740,601$ 6,689,567

Call loans and bills bought

2,818

14,488130,868

Monetary claims bought

12,274

13,564

122,522

Trading securities

―

8

72

Money held in trust

9,991

5,000

45,163

1,223,516

1,309,678

11,829,808

1,801,580

1,986,132

17,939,959

Foreign exchanges *6

2,862

3,630

32,794

Other assets *7, *8

75,84485,005

767,823

Tangible fixed assets *10, *11

23,36722,717205,199

Buildings

8,376

7,903

71,386Land

12,04911,427103,217

Construction in progress

468

857

7,741

Other tangible fixed assets

2,472

2,530

22,854

3,191

3,256

29,415

2,324

2,193

19,812

Software in progress

578

795

7,188

Other intangible fixed assets

288

267

2,415

Net defined benefit asset

2,400

6,941

62,704

Deferred tax assets

2,144

864

7,811

Customers’ liabilities for acceptances and guarantees

5,577

5,322

48,076(11,422)(11,540)(104,241)¥3,511,412¥4,185,672$37,807,541

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

Allowance for possible loan losses

10.0

0.4

0.2

5.0

0.0

0.0

March 31

(%)

85.0

2017

2018

2019

2020

2021

March 3175.0

Total assets

70.0

65.0

2017

2018

2019

2020

2021

March 31

2017

2018

2019

2020

2021

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
Notes: 1. All except for the capital adequacy ratio are on a non-consolidated basis.
2. Similar changes have been made to fiscal year ended March 31, 2020 only to reflect the revisions to presentation method of ROA and OHR in fiscal year ended March 31, 2021.
THE YAMANASHI CHUO BANK 2021

36

End of FY2020(March 31, 2021)

Cash and due from banks

Software(Domestic standard)

End of FY2020(March 31, 2021)

Assets:Intangible fixed assets

ROA

Thousands of U.S. Dollars

37

THE YAMANASHI CHUO BANK 2021

37

Millions of Yen
End of FY2019(March 31, 2020)

Thousands of U.S. Dollars

End of FY2020(March 31, 2021)

End of FY2020(March 31, 2021)②【Consolidated Statements of Income and Consolidated Statements of Comprehensive Income】】【Consolidated Statements of Income】】
Millions of Yen

Thousands of U.S. Dollars

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

FY2020(From April 1, 2020
to March 31, 2021)

Ordinary income:¥44,878¥49,602$448,038

Interest and dividends income

27,87028,341

255,998

Interest on loans and bills discounted

15,825

16,508149,112Interest and dividends on securities

11,807

11,575

104,559

Interest on call loans and bills bought

57

3

28

Interest on due from banks

72

149

1,351

Other

107

104

947

Fees and commissions

8,718

9,380

84,727

Other operating income

5,681

9,073

81,958Other ordinary income

2,608

2,807

25,355

2,608

2,807

25,355

Liabilities:

FY2020(From April 1, 2020
to March 31, 2021)¥2,976,587¥3,389,226$30,613,554

56,90748,361

436,832

35,34912,215

110,335

207,485

460,831

4,162,513

631

75

684

Other liabilities

24,90236,392

328,722

Provision for bonuses

1,051

1,030

9,309

Accrued bonuses to directors and corporate auditors

33

34

311

Reserve for directors’ and corporate auditors’
retirement benefits

10

7

65

Reserve for reimbursement of deposits

291

247

2,235

Reserve for contingent losses

146

131

1,187

Deferred tax liabilities

2,775

10,35593,540Ordinary expenses

38,151

43,372391,765

Acceptances and guarantees

5,577

5,322

48,076

Interest expenses

805

385

3,483

3,311,750

3,964,232

35,807,361

Deposits

376

316

2,861

Negotiable certificates deposits

10

5

51

Call money and bills sold

(10)

(19))

(178)

Deposits *7
Negotiable certificates of deposit
Payables under securities lending transactions
Borrowed money*7*7, *8Foreign exchanges

Total liabilities

Net assets:

Other *1

Common stock

15,40015,400139,102

Payables under securities lending transactions

384

56

512

Capital surplus

8,398

8,398

75,864

Borrowed money

41

14

130

Retained earnings

165,000

166,943

1,507,934

Other

2

11

107

Treasury stock(1,347)(1,263)(11,408)

Fees and commissions

2,428

2,418

21,850Total shareholders’ equity

187,451

189,479

1,711,492

Other operating expenses

5,751

10,674

96,416

Unrealized gains on available-for-sale securities

13,91230,395274,549

General and administrative expenses *2

27,14426,987

243,771

(26)

182

1,649

Other expenses

2,021

2,905

26,246

Remeasurements of defined benefit plans(4,393)(1,511)(13,653)

Provision of allowance for possible loan losses

902

755

6,824

Total accumulated other comprehensive income

9,492

29,066

262,545

Other expenses *3

1,119

2,150

19,421

147

138

1,255

6,726

6,229

56,273

2,570

2,755

24,888

199,661

221,4392,000,180¥3,511,412¥4,185,672$37,807,541

Deferred gains or losses on hedges

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

38

THE YAMANASHI CHUO BANK 2021

38

Ordinary profit

39

THE YAMANASHI CHUO BANK 2021

39

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

Thousands of U.S. Dollars

FY2020(From April 1, 2020
to March 31, 2021)

FY2020(From April 1, 2020
to March 31, 2021)

270

17

159

270

17

159

912

586

5,295

574

513

660

338

73

4,635

Income before income taxes and non-controllinginterests

6,085

5,661

51,137

Income taxes – current

1,447

2,166

19,570

Income taxes – deferred

700

253

2,292

Total income taxes

2,147

2,420

21,863Extraordinary income:Gain on disposal of fixed assets
Extraordinary losses
Impairment losses*4

Losses on disposal of fixed assets

ProfitProfit attributable to non-controlling interests
Profit attributable to shareholders of the parent

40

3,937

3,241

29,275

172

150

1,358

¥ 3,764¥ 3,090$ 27,917

THE YAMANASHI CHUO BANK 2021

40

【Consolidated Statements of Comprehensive Income】】
Millions of Yen
FY2019(From April 1, 2019
to March 31, 2020)
ProfitNet 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 interests41¥ 3,241$ 29,275(24,349)

19,610177,130(22,961)

16,518149,209

(26)

209

1,888

(1,362)

2,882

26,033¥(20,412)¥22,851$206,405¥(20,617)¥22,665$204,724

205

186

1,681

THE YAMANASHI CHUO BANK 2021

41

FY2020(From April 1, 2020
to March 31, 2021)

3,937

¥

Other comprehensive income *1

Thousands of U.S. Dollars

FY2020(From April 1, 2020
to March 31, 2021)

③【Consolidated Statements of Changes in Net Assets】】

Millions of Yen
Shareholders' equity

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

Commonstock

Capitalsurplus¥15,400

Retainedearnings¥ 8,287

Total
Treasurystock¥164,099

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

shareholders’equity¥(2,006)(1,135)

3,764

3,764
(1,128)(1,729)

1,729

0

58

Disposals of treasury stock
Changes in ownership interest ofparent due to transactions with
non-controlling interests

111

Transfer from retained earnings
to capital surplus

1,729

Balance at end of current year

3,090

3,090

58

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

111

Transfer from retained earnings
to capital surplus

900

659

1,671

¥15,400¥ 8,398¥165,000¥(1,347)¥187,451

Accumulated other comprehensive income¥(3,031)

Total
accumulated
Subscription
otherrights to
Non-controllingcomprehensive
sharesinterests
income¥ 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

Total changes during year
Balance at end of current year

FY2020 (From April 1, 2020 toMarch 31, 2021)
Balance at beginning 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

42

THE YAMANASHI CHUO BANK 2021

42

(0)

(31)

84

52

31

(31)

―

―

1,943

84

2,027

¥15,400¥8,398¥166,943¥(1,263)¥189,479

Millions of Yen
Accumulated other comprehensive income
Total
Valuation
Deferredaccumulated
Subscription
difference on
gains orRemeasurements
otherrights to
Non-controlling
available-forlosses onof defined benefit comprehensive
sharesinterests
sale securities
hedgesplans
income¥13,912¥ (26)¥(4,393)¥ 9,492¥147¥2,570Total net
assets¥199,661

Changes during year:
Cash dividends(1,115)

Profit attributable toshareholders of the parent

3,090

Purchases of treasury stock(0)

Cancellation of treasury shares
Disposals of treasury stock

52

Changes in ownership interestof parent due to transactions
with non-controlling interests
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 other thanshareholders' equity(0)

Net changes in items other thanshareholders' equity

111

¥―

¥187,451(1,115)

Disposals of treasury stock(1,128)―¥ 36,906¥(1,347)(1,115)

Balance at end of current year

Remeasurementsof defined benefit
plans¥165,000

Profit attributable toshareholders of the parent

Millions of Yen

FY2019 (From April 1, 2019 toMarch 31, 2020)
Balance at beginning of current
year¥8,398

Total
shareholders’
Treasury stock
equityCash dividends

Total changes during year

Deferred
gains orlosses onhedges¥15,400

Retainedearnings

Cancellation of treasury shares(1,729)Valuationdifference on
available-forsale securities

CapitalsurplusPurchases of treasury stock

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

Commonstock

Changes during year:¥185,780(1,135)Purchases of treasury stock
Cancellation of treasury shares

FY2020 (From April 1, 2020 toMarch 31, 2021)
Balance at beginning of current
year

Total changes during year
Balance at end of current year

16,483

209

2,882

19,574(8)

184

19,750

16,483¥30,395

209
¥182

2,882
¥(1,511)

19,574¥ 29,066

(8)
¥138

184
¥2,755

21,778¥221,439

43

THE YAMANASHI CHUO BANK 2021

43

④【Consolidated Statements of Cash Flows】】

Thousands of U.S. Dollars
Shareholders' equity
FY2020 (From April 1, 2020 toMarch 31, 2021)
Balance at beginning of current
year

Commonstock$139,102

CapitalsurplusRetainedearnings$ 75,864

Millions of Yen

Total
shareholders’
Treasury stock
equity$1,490,384$(12,170)

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

FY2020(From April 1, 2020
to March 31, 2021)¥ 6,085¥ 5,661

2,021

1,991

17,986

Impairment losses

574

513

4,635

Increase (decrease) in allowance for possible
loan losses

768

117

1,065

Increase (decrease) in accrued bonuses to
employees

(205)

(21)

(191)

Increase (decrease) in accrued bonuses todirectors and corporate auditors

(10)

0

6

Decrease (increase) in net defined benefit asset

621(4,541)(41,022)

Increase (decrease) in net defined benefit liability

(236)

―

―

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

(0)

(3)

(30)

Increase (decrease) in reserve forreimbursement of deposits

61

(44)

(398)

Increase (decrease) in reserve for contingent
losses

17

(14)

(134)

Interest income recognized on consolidated
statements of income(30,294)(28,341)(255,998)

805

385

3,483

(2,810)1,356

12,251

(9)

131

1,188

1,090

(2,314)(20,906)

67

55

501

Net decrease (increase) in loans and bills
discounted(97,320)(184,552)(1,666,993)

Net increase (decrease) in deposits

53,688412,638

Net increase (decrease) in negotiable certificatesof deposit

3,727,204(5,188)

8,545

77,191

Net increase (decrease) in borrowed money(14,580)

253,3462,288,379

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

(15)

(39)

(357)

Net decrease (increase) in call loans

2,922(12,960)(117,063)

Net increase (decrease) in payables under
securities lending transactions

22,005(23,134)(208,966)

Net decrease (increase) in foreign exchanges(assets)

1,179

(768)

(6,941).

$1,693,180

Cash dividends(10,078)(10,078)

Profit attributable toshareholders of the parent

Income before income taxes and non-controllinginterests

27,917

27,917

Adjustment for:(4)

Depreciation and amortization(4)

Cancellation of treasury shares
Disposals of treasury stock

(288)

766

477

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

288

(288)

Net changes in items other thanshareholders' equity
Total changes during year
Balance at end of current year

FY2020 (From April 1, 2020 toMarch 31, 2021)
Balance at beginning of current
year―$139,102―$ 75,864

17,551$1,507,934

762$(11,408)

18,313$1,711,492

Thousands of U.S. Dollars
Accumulated other comprehensive income
Total
Valuation
accumulated
Subscription
difference on Deferred gains Remeasurements
otherrights to
Non-controlling
available-foror losses on of defined benefit comprehensive
sharesinterests
sale securities
hedgesplans
income$ 125,664$(39,687)$ (240)$ 85,738$1,328$23,222

Total net
assets$1,803,468

Changes during year:
Cash dividends(10,078)

Profit attributable toshareholders of the parent

27,917Purchases of treasury stock(4)

Cancellation of treasury shares
477

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

Total changes during year
Balance at end of current year

Interest expenses recognized on consolidated
statements of income
Losses (gains) on investment securities
Losses (gains) on investments in money held intrust
Foreign exchange losses (gains) – net

Disposals of treasury stock

Net changes in items other thanshareholders' equity

148,886

1,888

26,033

176,807

(73)

1,666

178,400

148,886$ 274,549

1,888$1,64926,033$(13,653)

176,807$262,545(73)$1,255

1,666$24,888

196,713$2,000,180

44

THE YAMANASHI CHUO BANK 2021

44

FY2020(From April 1, 2020
to March 31, 2021)

Operating activities:

Changes during year:

Purchases of treasury stockThousands of U.S. Dollars

Losses (gains) on disposal of premises andequipment

45

THE YAMANASHI CHUO BANK 2021

45$

51,137

Millions of Yen

Thousands of U.S. Dollars

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

FY2020(From April 1, 2020
to March 31, 2021)

(305)

(555)

(5,018)Interest income (cash basis)

33,45531,684

286,197

The names of consolidated subsidiaries are Yamanashi Chuo Guarantee Co., Ltd., Yamanashi Chugin Lease Co., Ltd.,Interest expenses (cash basis)

(803)

(501)

(4,528)

Yamanashi Chugin DC Card Co., Ltd. and Yamanashi Chugin Management Consulting Co., Ltd.

Other – net

4,007

5,964

53,875(22,408)

447,508

4,042,170(945)(1,084)(9,797)(23,354)446,423

4,032,372

Purchases of investment securities(366,552)(248,539)(2,244,955)

ownership percentage of their net income and retained earnings do not have a material impact on our results of operations

Proceeds from sales of investment securities

214,764

155,305

1,402,816

and financial condition.

Proceeds from redemption of investment securities

29,71628,351

256,087

Increase of money held in trust(10,000)

(70)

(641)

―

4,920

44,446(1,514)(1,076)(9,720)

432

79

715

(1,027)(983)(8,880)0――(134,180)(62,012)(560,132)(1,135)(1,115)(10,078)

(1)

(1)

(15)

(1,128)(0)since our ownership percentage of their net income and retained earnings does not have a material impact on our(4)consolidated financial statements.

58

0

0

(80)

―

―

(2,287)(1,117)(10,097)

(0)

1

11

Net increase (decrease) in cash and cash equivalents(159,822)

383,295

3,462,155

Cash and cash equivalents, beginning of year

516,974

357,152

3,226,015¥ 357,152¥ 740,447$6,688,170

Net increase (decrease) in foreign exchanges(liabilities)

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

FY2020(From April 1, 2020
to March 31, 2021)【Notes to Consolidated Financial Statements】】
Important items used as basis for preparing consolidated financial statements

Investing activities:(1) Consolidated subsidiaries 4 companies(2) Number of non-consolidated subsidiaries 4 companies
Yamanashi New Business Support Investment Limited Partnership
Yamanashi Sixth Industrialization Support Investment Limited Partnership
Yamanashi Chugin 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 ourProceeds from decrease of money held in trust
Purchases of premises and equipment
Proceeds from sales of premises and equipment
Purchases of intangible fixed assets
Proceeds from sales of intangible fixed assets
Net cash provided by (used in) investing activities

Dividends paid
Payment of dividends to non-controlling interests
Repurchases of treasury stock
Proceeds from sales of treasury stock
Proceeds from changes in ownership interest in
subsidiaries that do not result in change of scope of
consolidation
Net cash provided by (used in) used in financing
activities
Foreign currency transaction adjustments on cash andcash equivalents

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
Yamanashi Chugin Regional Revitalization Investment Limited Business Partnership

Financing activities:

Cash and cash equivalents, end of year *1

1. Items relating to scope of consolidation

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(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, which management has the positive intent and ability to hold to maturity are reported atamortized cost, and available-for-sale securities, which are not classified as either of the aforementioned securities, arereported at fair value with unrealized gains and losses, net of applicable taxes, reported in a separate component of equity.
Available-for-sale securities whose fair values are extremely difficult to be determined are stated at cost determined by themoving-average method. The cost of securities sold is determined based on the moving-average method.

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

Claims other thanthose describedabove(3) Valuation standards and methods for derivative transactions
Derivative transactions are measured at fair value.
(4) Methods of depreciation of fixed assets① 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.)

Claims on borrowers
requiring caution

Useful lives of tangible fixed assets are primarily as follows:
Buildings

3 to 50 years

Other

2 to 20 years

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.
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).
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.

Claims on
borrowers
requiringsupervision
Quasi-equity
loans
Claims subject
to thediscounted
cash flow(DCF) method
Claims on
borrowers
requiringsupervisionand support

Claims on debtors that require future
caution with respect to supervision, such as
debtors with problematic lending conditions,debtors that have problems fulfilling their
obligations, debtors facing poor or unstablebusiness conditions or debtors with aproblematic financial condition
Claims on debtors that have restructuredloans or are three or more months in arrears
Loans that can be handled as equity as theircontract conditions are found to havesufficient equity-like characteristics
equivalent to equity
Claims for which cash flows related to therecovery of loan principal and receipt ofinterest can be reasonably estimatedClaims on debtors that require business
improvement and corporate restructuring
who fulfill certain conditions, such as thoseinitiatives being found to have a high degreeof uncertainty

Residual value of those lease assets is zero unless any guaranteed amount is prescribed in the lease agreement.
(5) Standards for recording the allowance for possible loan losses
The allowance for possible loan losses is recorded in accordance with internally established standards for charge-offs andprovisions, as follows:
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
from the operational departments.
The policy for the allowance for possible loan losses of consolidated subsidiaries is similar to the Bank’s.

Debtor category
Claims on normal
borrowers
Quasi-equity loans

Housing loans
with guarantees
from the Bank’s
subsidiary, etc.

Definition
Claims on debtors whose business results
are favorable and who are found not to haveany particular problems with their financial
condition
Loans that can be handled as equity as theircontract conditions are found to havesufficient equity-like characteristics
equivalent to equity
Claims on consumers for housing loans withguarantees offered by Yamanashi Chuo
Guarantee Co., Ltd., a consolidated
subsidiary of the Bank

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Calculation method for allowancefor possible loan losses

The allowance is calculated by estimating theprospective loss amount based on the bankruptcy
probabilities according to the residual period ofeach claim.
The allowance is recorded based on theprospective loss amount for the upcoming year.
The prospective loss amount is calculated bydetermining several loss ratios based on the
average value of the actual loan loss ratio over acertain period in the past based on the actual
loan loss record over 1 year and using a

Housing loans
withguarantees
from theBank’ssubsidiary, etc.

Claims on consumers for housing loans withguarantees offered by Yamanashi Chuo
Guarantee Co., Ltd., a consolidated
subsidiary of the Bank

Claims otherthan thosedescribed
above

Claims on otherborrowers
requiring caution
Quasi-equity
loans

Claims on borrowers requiring caution otherthan claims on borrowers requiringsupervision
Loans that can be handled as equity as theircontract conditions are found to havesufficient equity-like characteristics
equivalent to equity

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prospective loss ratio determined in considerationof the outlook and other factors.
The allowance is recorded based on theprospective loss amount for the upcoming year.
The prospective loss amount is calculated bydetermining several loss ratios based on the
average value of the actual loan loss ratio over acertain period in the past based on the actual
loan loss record over 1 year and using aprospective loss ratio determined in considerationof the outlook and other factors.

The allowance is calculated by estimating theprospective loss amount based on the bankruptcy
probabilities according to the residual period ofeach claim.
The allowance is based on the difference between
the present value of the expected future cash flows
discounted at the initial contracted interest rate
and the carrying amount of the claim (DCF
method).
The allowance is recorded based on aprospective loss amount for the next three years
equivalent to claims on potentially bankrupt
borrowers. The prospective loss amount iscalculated by determining several loss ratios
based on the average value of the actual loan
loss ratio over a certain period in the past basedon the actual loan loss record over three years forclaims on potentially bankrupt borrowers andusing a prospective loss ratio determined inconsideration of the outlook and other factors.
The allowance is recorded based on theprospective loss amount for the upcoming 3
years. The prospective loss amount is calculated
by determining several loss ratios based on the
average value of the actual loan loss ratio over acertain period in the past based on the actual
loan loss record over 3 years and using aprospective loss ratio determined in considerationof the outlook and other factors.
The allowance is recorded based on theprospective loss amount for the upcoming 3 years.
The prospective loss amount is calculated bydetermining several loss ratios based on the
average value of the actual loan loss ratio over acertain period in the past based on the actual loan
loss record over 3 years and using a prospective
loss ratio determined in consideration of theoutlook and other factors.

The allowance is calculated by estimating theprospective loss amount based on the bankruptcy
probabilities according to the residual period ofeach claim.

Claims subject
to thediscounted
cash flow(DCF) method
Claims on
borrowers
requiringsupervisionand support

Housing loans
withguarantees
from theBank’ssubsidiary, etc.

Claims on debtors who have loans
equivalent to restructured loans and loans
related to their affiliates, for which cash
flows related to the recovery of loan
principal and receipt of interest can bereasonably estimatedClaims on debtors that require business
improvement and corporate restructuring
who fulfill certain conditions, such as thoseinitiatives being found to have a high degreeof uncertainty

Claims on consumers for housing loans withguarantees offered by Yamanashi Chuo
Guarantee Co., Ltd., a consolidated
subsidiary of the Bank

Claims otherthan thosedescribed
above

Claims on potentiallybankrupt borrowers

Effectively bankrupt
borrowers

Legally bankrupt
borrowers

Claims on debtors who are deemed not to be
currently legally bankrupt but are highly likely
to become bankrupt

Claims on debtors under the same
circumstances as bankrupt borrowers

Claims on debtors who are legally bankrupt
based on bankruptcy, special liquidation, orother proceedings

The allowance is based on the difference between
the present value of the expected future cash flows
discounted at the initial contracted interest rate
and the carrying amount of the claim (DCF
method).
The allowance is recorded based on theprospective loss amount for the next three years
equivalent to claims on borrowers requiringsupervision. The prospective loss amount iscalculated by determining several loss ratios
based on the average value of the actual loan
loss ratio over a certain period in the past basedon the actual loan loss record over three years forclaims on borrowers requiring supervision andusing a prospective loss ratio determined inconsideration of the outlook and other factors.
The allowance is recorded based on theprospective loss amount for the upcoming year.
The prospective loss amount is calculated bydetermining several loss ratios based on the
average value of the actual loan loss ratio over acertain period in the past based on the actual
loan loss record over 1 year and using aprospective loss ratio determined in considerationof the outlook and other factors.
The allowance is recorded based on theprospective loss amount for the upcoming year.
The prospective loss amount is calculated bydetermining several loss ratios based on the
average value of the actual loan loss ratio over acertain period in the past based on the actual
loan loss record over 1 year and using aprospective loss ratio determined in considerationof the outlook and other factors.
The allowance is recorded in the amount deemed
to be necessary based on a comprehensive
assessment of the overall repayment ability of the
debtor. The amount necessary shall be within theoutstanding balance of the claims after deductionof the amounts expected to be collected throughthe disposal of collateral and execution ofguarantees.
The allowance is recorded based on theoutstanding balance of the claims after deductionof the amounts expected to be collected throughthe disposal of collateral and the execution ofguarantees
The allowance is recorded based on theoutstanding balance of the claims after deductionof the amounts expected to be collected throughthe disposal of collateral and the execution ofguarantees

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.
(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.
(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
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(10 years) based on the average remaining service period in each consolidated fiscal year in which they occur and recorded
in profit and loss from each of the following year of the occurrence.
(12) Foreign currency items
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,”in which derivative transactions such as individual interest rate swaps are conducted for each transaction, are performed asa hedging instrument.
Evaluation of hedge effectiveness is taken as an evaluation of effectiveness when the conditions of the hedge instrument
and hedge object are largely identical.
(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.

(Changes in Accounting Estimates)
Previously, all claims on borrowers requiring supervision and claims on other borrowers requiring caution, except for quasi-equity(6) Accrued bonuses to employees

loans and claims subject to the DCF method, were recorded based on the prospective loss amount for the upcoming three years

Accrued bonuses to employees are provided to cover the payment of bonuses to employees, in the amount of the estimatedor the upcoming year using the same method for each type of claim. However, as of March 31, 2021, the Bank has judged thatbonuses payable to employees attributable to each fiscal year.

the credit risk associated with claims on borrowers requiring supervision and support is now markedly different from the previous
credit risk associated with claims on borrowers requiring supervision or claims on other borrowers requiring caution, due to factors(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
attributable to each fiscal year.
(8) Reserve for directors’ and corporate auditors’ retirement benefits

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such as changes in the external environment that will affect the claims on those debtors. Therefore, from the fiscal year ended
March 31, 2021, claims on borrowers requiring supervision and support who are classified as borrowers requiring supervision,
are recorded based on the prospective loss amount for the upcoming three years equivalent to claims on potentially bankrupt
borrowers, and claims on borrowers requiring supervision and support who are classified as other borrowers requiring caution,

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are recorded based on the prospective loss amount for the upcoming three years equivalent to claims on borrowers requiring

various infection countermeasures, vaccines and related initiatives do not materialize as anticipated; or if economic

supervision.

policies of the national and local governments, support from financial institutions and other assistance do not deliver the

As a result of this change, provision of allowance for possible loan losses for the fiscal year ended March 31, 2021 increasedby ¥255 million and ordinary profit and income before income taxes decreased by the same amount, compared with the amounts
that would have been recorded under the previous method.

anticipated benefits. These losses could have a significant impact on the consolidated financial statements for thefollowing fiscal year.
(C) The Bank assumes that claims except for quasi-equity loans, claims subject to the DCF method and claims on borrowers
requiring supervision and support will generate similar losses as claims on normal borrowers, claims on borrowers(Important Accounting Estimates)

requiring supervision and claims on other borrowers requiring supervision the Bank held in the past. The Bank further

1. Estimates of allowance for possible loan losses

assumes that claims on borrowers requiring supervision and support will generate similar losses as claims on potentially(1) Amounts recorded on the consolidated financial statements in the fiscal year ended March 31, 2021

bankrupt borrowers and claims on borrowers requiring supervision the Bank held in the past. These assumptions could

From April 1, 2020 to March 31, 2021

(Millions of yen)

Allowance for possible loan losses¥11,540

differ markedly from the actual loss experience due to factors such as changes in the business environment of debtors.
In this case, there could be a significant impact on the consolidated financial statements for the following fiscal year.

(2) Other information to aid the understanding of estimates among individuals using the consolidated financial statements(Unapplied Accounting Standards, etc.)① How estimates are calculated
The standards for recording the allowance for possible loan losses are presented in “(5) Standards for recording the・Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019)

allowance for possible loan losses” under “4. Items relating to accounting standards” in “Notes to Consolidated Financial

・Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Statement No. 31, July 4, 2019)

Statements (Important items used as a basis for preparing consolidated financial statements).”

・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)② Assumptions used to calculate estimated amounts(A) Assumptions regarding forecasts of debtors’ business results, which are used to determine debtor categories and(1) Overview

estimate cash flows related to the recovery of loan principal and the receipt of interest, are set based on information“Accounting Standard for Fair Value Measurement” and “Implementation Guidance on Accounting Standard for Fair Value

available to the Bank. Notably, the revenue plans of debtors under claims subject to the DCF method are prepared based

Measurement” (“Accounting Standards for Financial Instruments, etc.”) were developed to improve comparability with theon various assumptions and data. The Bank comprehensively judges the reasonableness and feasibility of those

provisions of international accounting standards, and guidance related to methods of fair value measurement were established.

assumptions and data, considering factors such as the debtor’s financial status, the condition of the debtor’s industry,

Accounting Standards for Fair Value Measurement, etc. are applied to the fair value of financial instruments.

the effects of various measures in the revenue plan, the past record of progress, and the outlook for achieving goals.
(B) The economy has been gradually improving since July 2020, although the impact of COVID-19 will continue into the
future to a certain extent. The extensive reach of various COVID-19 countermeasures, the widespread adoption of
vaccines and related initiatives are expected to continue to drive a sustained economic recovery. Although COVID-19
will temporarily have a serious impact on certain industries during this period, the Bank assumes that the economic
policies of national and local governments, support from financial institutions and other assistance will continue. In the

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

fiscal year ended March 31, 2021, there have been no major changes to the assumptions regarding the impact of COVID19 that were presented in the consolidated financial statements for the fiscal year ended March 31, 2020 (Additional(Change in Presentation Method)

Information).

(Consolidated Statements of Income)(C) The Bank assumes that claims on normal borrowers except for quasi-equity loans, claims subject to the DCF method
and claims on borrowers requiring supervision and support will generate similar losses as the claims to normal borrowers
the Bank held in the past. The Bank further assumes that claims on borrowers requiring supervision will generate similar
losses as claims on borrowers requiring supervision the Bank held in the past, and that claims on other borrowers

Regarding gain or loss on cancellation and redemption of investment trusts, the Bank previously presented the gain in interestand dividends on securities under interest and dividends income, and the loss in other expenses, for each transaction. The
Regulation for Enforcement of the Banking Act has been amended to newly establish core net business profit (excluding gain

requiring caution will generate similar losses as claims on other borrowers requiring caution the Bank held in the past.

(loss) on cancellation of investment trusts) as an indicator of the status of core business operations. The Bank has taken thisThe Bank also assumes that claims on borrowers requiring supervision and support who are classified as borrowers

opportunity to reexamine the characteristics of gain or loss on cancellation and redemption of investment trusts. As a result, therequiring supervision will generate similar losses as claims on potentially bankrupt borrowers the Bank held in the past,

Bank recognizes that this gain and loss both reflect the investment performance of investment trusts. Accordingly, to present its

and that claims on borrowers requiring supervision and support who are classified as other borrowers requiring caution
will generate similar losses as claims on borrowers requiring supervision the Bank held in the past.
③ Impact on the consolidated financial statements for the following fiscal year
(A) Forecasts of debtors’ business results, which are used to determine debtor categories and estimate cash flows related
to the recovery of loan principal and the receipt of interest, may differ from results that were initially assumed due tofactors such as changes in anticipated events and the external environment. If the forecasts need to be revised, theserevisions could have a significant impact on the consolidated financial statements for the following fiscal year.
(B) The Bank may incur substantial loan losses if COVID-19 infections spread more widely than expected; if the effects of

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THE YAMANASHI CHUO BANK 2021

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operating results more accurately, the Bank has decided to present the gain, if it exceeds the loss as of each fiscal year-end, ininterest and dividends on securities under interest and dividends income, and the loss, if it shall exceed the gain as of each fiscal
year-end, as other operating expenses, from the fiscal year ended March 31, 2021.
The Bank has restated the consolidated financial statements for the previous fiscal year to reflect these changes in thepresentation of the consolidated financial statements.
As a result, in the consolidated statements of income for the previous fiscal year, gain on cancellation and redemption of
investment trusts of ¥2,423 million, which was presented in interest and dividends on securities under interest and dividends

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income, and loss on cancellation and redemption of investment trusts of ¥4,014 million, which was presented in other expenses,

Banking Industry.” The Bank has the right to sell or pledge commercial bills discounted and foreign exchanges bought without

were restated as other operating expenses (¥1,591 million on a net basis).

restrictions. The face amount was as follows:
As of March 31, 2021

(Millions of yen)

(Adoption of Accounting Standards for Disclosure of Accounting Estimates)
The Bank has adopted the Accounting Standards for Disclosure of Accounting Estimates (ASBJ Statement No. 31, March 31,2020) from the consolidated financial statements pertaining to the end of the current fiscal year. With the adoption of this standard,
the Bank has provided notes on important accounting estimates in the consolidated financial statements.
That said, related information on the previous fiscal year is not provided in these notes in accordance with the transitional
treatment set forth in the proviso to paragraph 11 of the newly adopted accounting standard.

(Relating to Consolidated Balance Sheets)*1 Shares held or investments in non-consolidated subsidiaries and affiliates
As of March 31, 2021

(Millions of yen)

Investments¥895¥2,891*7 Assets pledged as collateral were as follows:
As of March 31, 2021

(Millions of yen)

Assets pledged as collateral
Investment securities¥518,520

Liabilities related to pledged assets
Deposits

115,893

Payables under securities lendingtransactions

12,215

Borrowed money

460,107

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

*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, 2021

(Millions of yen)

As of March 31, 2021

¥ 2,556

Cash collateral paid for financial instruments

Past due loans

19,309

Guarantee deposits

Paragraph 1, Subparagraphs 3 and 4 of Enforcement Ordinance for the Corporation Tax Law. Past due loans are defined as
nonaccrual loans except for loans to customers in bankruptcy and loans of which the interest payments are deferred in order
to assist in the financial recovery of a debtor in financial difficulties.
*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, 2021

1,140
273

*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, 2021

(Millions of yen)

Lease contract assets¥1,046

Corresponding borrowed money(Millions of yen)

Past due loans of three months or more

¥1

Accruing loans contractually past due three months or more are loans on which the principal or interest is three months ormore past due.

as follows:(Millions of yen)

Restructured loans for which the Bank has¥5,245relaxed lending conditions

724*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, 2021 were as follows:
As of March 31, 2021

*4 The amount of restructured loans for which the Bank has relaxed lending conditions included in loans and bills discounted was
As of March 31, 2021

¥60,000

requirements

Loans to customers in bankruptcy

Loans to customers in bankruptcy represent nonaccrual loans to debtors who are legally bankrupt, as defined in Article 96,(Millions of yen)Central clearing counterparty margin

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)
¥367,306
338,361

Since many of these commitments are expected to expire without being drawn upon, the total amount of unused commitments

Restructured loans are loans for which the Bank has relaxed lending conditions, such as: reduction of the original interest rate,

does not necessarily represent actual future cash flow requirements. Many of these commitments have clauses that allow thedeferral of interest payment, extension of maturity date, or reduction of the amount of the debt or accrued interest.

Bank to withdraw the commitment line offer or reduce the contract amounts in situations where economic conditions are*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, 2021
Total amount(Millions of yen)
¥27,112changed, 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.

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,
October 8, 2020, “Treatment for Accounting and Auditing of Application of Accounting Standard for Financial Instruments in

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THE YAMANASHI CHUO BANK 2021

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(Relating to Consolidated Statements of Comprehensive Income)*10 Accumulated depreciation of tangible fixed assets
As of March 31, 2021

(Millions of yen)

Total amount of accumulated depreciation*1 Reclassification adjustment and tax effect related to comprehensive income¥34,882

From April 1, 2020 to March 31, 2021
Valuation difference on available-for-sale securities:*11 Deferred gains on tangible fixed assets deductible for tax purposes:
As of March 31, 2021

(Millions of yen)

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

Difference arising during the fiscal year(―)

*12 The amount of guarantee liabilities for private placement bonds in “Securities” (provided in accordance with the Financial
Instruments and Exchange Act, Article 2, Paragraph 3) was as follows:(Millions of yen)
¥5,491(Relating to Consolidated Statements of Income)Amount before income tax effect

23,770

Income tax effect(7,251)

Valuation difference on available-for-sale securities

16,518Deferred gains or losses on hedges:
Difference arising during the fiscal year

300

Reclassification adjustment to profit and loss―

Amount before income tax effect300

Income tax effect(91)

Gains or losses on deferred hedges

209(Millions of yen)

Gains (losses) arising during the fiscal year

3,309

¥2,297

Reclassification adjustment to profit and loss

835

Gain on sales stock*2 “General and administrative expenses” include the following:
From April 1, 2020 to March 31, 2021

1,337

Remeasurements of defined benefit plans*1 “Other ordinary income” includes the following item:
From April 1, 2020 to March 31, 2021

¥22,433

Reclassification adjustment to profit and loss

¥740

As of March 31, 2021

(Millions of yen)

(Millions of yen)

Salary allowance¥11,006

Amount before income tax effect4,144

Income tax effect(1,262)Remeasurements of defined benefit plans

2,882

Total other comprehensive income¥19,610*3 "Other ordinary expenses" include the following:
From April 1, 2020 to March 31, 2021

¥842

(Relating to Consolidated Statements of Changes in Net Assets)
From April 1, 2020 to March 31, 2021

800

1. Items relating to kind and total number of shares outstanding and treasury stock(Millions of yen)

Loss on sales of equity securities
Loss on devaluation of stocks and othersecurities(Thousands of shares)
Number of shares atthe beginning of
Increase in number of Decrease in number of Number of shares at
FY2020shares during FY2020 shares during FY2020 the end of FY2020
Remarks*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, 2020 to March 31, 2021
Location

Use

Yamanashi Prefecture

Operating assets
Idle assets

Total

―

(Millions of yen)
Category
Land and othertangible fixed assets
Land―

Total impairment loss
¥ 18
494
¥513

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. Head Office, computing centers, company residences and dormitories, etc. are regarded as shared assets.

Shares outstanding
Common stock

32,783――

Treasury stock
Common stock
934
0
58
876
Note 1, 2
Notes: 1. The increase in the number of treasury shares during the consolidated fiscal year under review is due to the demand for purchaseof shares less than one unit.
2. The breakdown of the decrease in treasury shares during the fiscal year under review is as follows:
Decrease by exercise of stock option rights 5 thousand shares
Decrease by allotment of restricted shares 53 thousand shares

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, 2020 employs a 1.9% discount rate in thecase of value in use.
All of the recoverable amounts for the fiscal year ended March 31, 2021 represent net selling prices.

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32,78357

THE YAMANASHI CHUO BANK 2021

57

2. Items relating to share subscription rights and own share options

Classification
The Bank

Breakdown of
share
subscription
rightsStock options as
share
subscription
rights

2. Expected amounts from the collection of gross lease receivables and net investment in leases for the year ended March 31,
2021 are as follows:

Class of shares
to be issued ortransferred upon
the exercise ofshare
subscription
rightsNumber of shares to be issued or transferred upon theexercise of share subscription rights (shares)
FY2020
Beginning of
FY2020

Increase

Decrease

End of FY2020

Balance as ofthe end of
FY2020(Millions of
yen)
¥138

–

Total

¥138

–

3. Items relating to dividends(1) Dividend paid during FY2020(Resolution)
Annual General
Meeting of
Shareholders on
June 24, 2020
Board of Directors’Meeting on
November 11, 2020

Annual General
Meeting of
Shareholders on
June 25, 2021

(Millions of yen)
Gross lease receivables

Net investment in leases

1 year or less¥3

¥2,814

1 to 2 years

3

2,370

2 to 3 years

3

1,781

3 to 4 years

3

1,102

4 to 5 years

3575Over 5 years

―

472

Total

¥17

¥9,117(Financial Instruments and Related Disclosure)Type of stock

Total dividend(Millions of yen)

Dividends per share(Yen)

Reference date

Effective dateCommon stock¥557¥17.50March 31, 2020

June 25, 2020

Common stock

558

17.50

September 30, 2020

December 3, 2020

1. Qualitative Information of Financial Instruments(1) Policy for financial instruments
The Group is involved in financial services including the leasing and the credit card business, etc. around the banking business.
Within banking, we are involved in the business of taking deposits, making loans and securities trading, as well as domestic
and foreign exchange operations, corporate bond underwriting, the over-the-counter sale of public bonds such as Japanese
government bonds, investment trusts and insurance. In addition, for the purpose of short-term fund raising, we enter into call(2) Dividends whose reference date falls in the current fiscal year, but where the effective date of dividend occurs after the end of
FY2020.
(Resolution)

As of March 31, 2021

Type of stock

Common stock

Total dividend(Millions of yen)Fund for dividend¥558

Retained earnings

Dividends per
share (Yen)

Reference date

¥17.50March 31, 2021

Effective dateloans and call money in the interbank market. Derivative transactions are primarily meant for hedges against interest rate riskor the risk of exchange fluctuations and may involve transactions such as interest rate swaps, forward exchanges or currency
swaps. However, we do not conduct transactions whose structures are complicated and speculative transactions. Because
we hold financial assets and liabilities with interest rate risk, we conduct Asset Liability Management (ALM) to limit theJune 28, 2021

disadvantageous influence from fluctuations in interest.
(2) Nature and extent of risks arising from financial instruments
The financial assets that the Group holds are loans for domestic customers and domestic and foreign securities. Loans have

(Relating to Consolidated Statements of Cash Flows)

credit risk, brought about by the borrower’s nonperformance of contractual obligations. The contents of securities are mainly*1 The reconciliation of the cash and due from banks in the consolidated balance sheets and the cash and cash equivalents atbonds, stocks and investment trusts. The Group holds these securities for the purpose of holding to maturity, investment

March 31, 2021, is as follows:

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

From April 1, 2020 to March 31, 2021

(Millions of yen)

The Group regards the deposits from customers as its main supply of financial funds. The Group secures stable financing¥740,601

by maintaining the soundness of financial affairs, but has liquidity risk that it may not be possible to obtain necessary funds

Cash and due from banks
Due from banks, excluding due from Bank of Japan(154)

Cash and cash equivalents¥740,447

due to the outflow of unexpected funds.
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, October 8, 2020, “Treatment of Accounting and Auditing(Relating to Lease Transactions)concerning Accounting for Foreign Currency Transactions in the Banking Industry.”

Finance leases(3) Risk management systems for financial instruments(Lessor)
1. Details of net investment in leases for the year ended March 31, 2021 are as follows:
As of March 31, 2021

(Millions of yen)

Gross lease receivables¥9,117

Estimated residual value

213

Unearned interest income(889)

Net investment in leases¥8,441① Credit risk management
The Group performs maintenance of the credit screening system, fosters talented human resources and positively advances
credit risk management. The credit screening system keeps the credit screening section independent and performs strict
screening in advance, performs interim screening and assesses credit enhancements and credit risk management after
lending. Regarding administration, the marketing section and credit screening section or the headquarters and businessoffices perform mutual check functions. The Group tries for the observance of the financing rule and appropriate use andthereby acts in enhancement of system support such as the practical use of the financing support system. Furthermore, for

59
58

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THE YAMANASHI CHUO BANK 202159

coping with risk fluctuating continually, the Group monitors the actual condition of customers through credit rating and self-(excluding trading account securities) while taking into consideration the correlation among interest rates for shares andassessment to be performed regularly or at any time. The Group introduced the “Credit risk information integration service,”

investment trusts. In addition, with respect to the yen-denominated interest risk applicable to demand deposits, internal

which is a joint undertaking of the banks that joined the Regional Bank Association, aiming at upgrading credit risk

models are used to estimate core deposits and VaR used as the means for measurement. Trading account securities

management and refining measurement of value at risk (VaR).

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

We monitor credit information, current-prices and VaR, and manage the credit risk of issuers of securities and counterparty
risk of derivative transactions in the risk management section.
The situation of these risk management activities is reported to management regularly in the ALM Committee and theboard of directors.

considered to have little relevance to market risks, including shares of non-listed companies, are managed on a credit risk
basis. Taking into consideration the nominal amount of market risk applicable to the financial instruments held byconsolidated subsidiaries, these financial instruments are excluded from the scope of VaR measurement.
The Group’s VaR (excluding trading account securities) amounted to ¥48,811 million as of March 31, 2021 comparedwith ¥102,456 million as of the end of the previous fiscal year. The VaR of trading account securities amounted to ¥0② Market risk management

million. (Previous consolidated fiscal year: ¥0 million). The Group undertakes backtesting to compare VaR, calculated(A) Interest-rate risk management
The Group supports the needs of customers properly and, for the earning capacity improvement of the Bank, conducts

using VaR measurement models with actual income and loss. The results of this comparison are reported to the ALM

interest rate risk management as a basic policy. We devised “the basic policy for the interest rate risk hedge” as a general

Committee on a monthly basis. As a result of this backtesting, the Group is confident that the VaR measurement models

rule every half term to control interest rate risk properly in the ALM Committee in which management is involved as theused are more than adequate in accurately identifying market risks. However, VaR represents the amount of market risks

main members and involved in examining interest rate changes and reviews it regularly. In addition, in the ALM committee

arising with a certain probability using a statistical methodology based on historical market volatilities. Accordingly,

meeting held monthly, the Group examines an interest rate predictive report that the interest rate prediction committee

situations may arise where it is not possible to identify risks appropriately due to market environment volatility that exceeds

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

normally recognized parameters.

management section, the Group calculates VaR and basis point value (BPV), and manages the interest rate risk amount③ Liquidity risk managementof the banking account. In addition, the Group performs stress tests based on a stress scenario extending to each risk

The Group controls liquidity risk by managing the mismatch between the terms of investing and procuring funds as well as

category. These results are reported to management regularly in the ALM Committee and the board of directors.

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(B) Foreign exchange risk management
The Group manages foreign exchange risk by monitoring exposure to foreign exchange and VaR in the risk management

risk management committee and the board of directors, etc.

section. Moreover, it reports regularly to management in the ALM committee and board of directors, etc. The majority of(4) Supplementary explanation of the fair value financial instruments

foreign exchange risk is hedged by forward exchange contracts.

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,(C) Market price risk management
Regarding investment in financial instruments including securities, the Group conducts risk management in conformity

the results of such calculations may vary if different assumptions are used.

with a basic administration policy. The basic administration policy is as follows. The Group executes the market businesswhile attempting to secure fairness and prompt correspondence. The Group realizes the opportunity for earnings byactively taking risks that can be measured and managed. The proof of maximizing management vitality, like earnings andequity capital, is assumed to be a precondition. The operative plans are decided by the board of managing directors after
discussion with the ALM Committee.
In making the plans, the Group examines the expected rate of return based on the prospect of interest rate and stock
prices, market price risk and return in consideration of the correlation between the financial instruments invested in. The
Group measures market price risks such as stock price risk using the VaR method. The ALM Committee monitors VaR
based on risk limits and the results of stress tests and tries for coexistence of securing of 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
standard. Moreover, the Group reports regularly to management in the ALM committee and the board of directors, etc.
(E) Quantitative information regarding market risk
In principle, the Group undertakes a quantitative analysis of the market risks applicable to all of its financial instruments.
The volume of market risk is mainly managed utilizing the VaR method. In specific terms, market risks are managed in amanner that ensures that VaR (the amount of risk after writing down investment in shares undertaken for strategic
business purposes for a portion of VaR) does not exceed the maximum amount of risk (amount of capital allocation)
determined by a resolution of the Board of Directors or other appropriate bodies. The variance-covariance method(holdings period: 240 days; confidence interval: 99%; observation period: 240 business days) is used to measure VaR60

THE YAMANASHI CHUO BANK 2021

60

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61

2. Fair Values of Financial Instruments(2) Trading securities

Fair value and carrying amounts of financial instruments are shown below. Some instruments, such as unlisted stocks, whose fair

The fair values of securities such as bonds that the Bank holds for engaging in dealing are determined by reference tovalues are extremely difficult to determine, are not included in the table below (see Note 2).

quoted market prices on stock exchanges or prices offered by correspondent financial institutions.

As of March 31, 2021

(Millions of yen)
Carrying amount inconsolidated balance
sheetsFair value¥ 740,601(1) Cash and due from banks

Difference(3) Securities
The fair values of stocks are determined by reference to quoted market prices on stock exchanges. The fair values of bonds¥¥ 740,601―

are determined by reference to quoted market prices or prices offered by correspondent financial institutions. The prices of
the Bank’s guaranteed private placement bonds are calculated by discounting the estimated future cash flows for each(2) Trading securities
Securities―trading

8

8

―

5,491

5,496

4

Available-for-sale securities

1,299,247

1,299,247―(4) Loans and bills discounted

1,986,132

expense rates. Investment trusts are determined by reference to their publicly available net asset value.

(3) Securities
Held-to-maturity

classification based on the issuers’ internal rating and terms by using the risk-free interest rates plus credit cost rates andInformation outlining notes for investment securities according to the purpose for which they are held is contained under“Relating to securities.”(4) Loans and bills discounted

723

As floating-rate loans and bills discounted reflect market interest rates over short periods, unless the credit standing of theDeferred income (Interest on loans and guarantee
charge) *1(2,065)borrower is significantly different after the loan was made or the bill was drawn, the fair value approximates the carrying

Allowance for possible loan losses *2(11,278)

Accrued income (Interest on loans)value. The fair value is therefore deemed equal to the carrying value.

1,973,512

1,987,523

14,01060,00060,000―Total assets¥4,078,861¥4,092,876¥14,015(1) Deposits¥3,389,226(5) Other assets
Central clearing counterparty margin requirements

Accrued expenses (Interest on deposits)

¥

―

185
3,389,412(2) Negotiable certificates of deposits

66¥3,389,478

based on their type, internal rating, status of collateral and guarantee, and terms, and by discounting the future cash flowsof the principal and interest using the rates at which similar new loans would be made or market interest rates plus credit
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) approximating theircarrying 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 basedon estimated recoverable amounts. Thus, the fair values of those loans approximate the consolidated balance sheet
amounts at the closing date minus the currently estimated losses and are therefore deemed equal to the amounts.

48,361

Accrued expenses (Interest on NCDs)

The fair values of fixed-rate loans and bills discounted are their present values that are estimated for each classification

The fair values of loans and bills discounted for which repayment terms are not set because of their attributes (e.g. loans

048,362

48,3630

are limited to the amounts of pledged assets) are assumed to approximate their carrying values, considering the expected(3) Payables under securities lending transactions

12,215

12,215―

repayment periods and interest rate conditions, and are deemed equal to the carrying values.

(4) Borrowed money

460,831

460,832

1¥3,910,821¥3,910,890

Total liabilities
Derivatives¥

68(5) Other assets
Since the fair value approximates the acquisition cost, the fair value of central clearing counterparty margin requirements istreated as the actual amount.

*3

Hedge accounting is not applied¥

Hedge accounting is applied(3,550)¥262(3,550)

¥

262
¥

―

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*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.

were demanded at the balance sheet date. The fair values of time deposits and negotiable certificates of deposit, which are

Total derivatives¥(3,287)¥(3,287)(Note 1) Method Used for Determining the Fair Value of Financial Instruments

classified 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.
(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

Assetsapproximates the book value.

(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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THE YAMANASHI CHUO BANK 2021

62(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,

63

THE YAMANASHI CHUO BANK 2021

63

and the book value is treated as the fair value. The present value of money borrowed at fixed rates is calculated by(Note 4) Maturity analysis for interest-bearing debt

discounting the total value of the principal and interest of the borrowed money by the expected interest rate for similar loans.

As of March 31, 2021
Over 3 years less
5 years

Over 5 years less
7 years

Over 7 years less10 years

Over 10 years¥3,056,383¥190,538¥27,307

¥―

¥―

¥―

Negotiable certificatesof deposit

48,361

―

―

―

―

―

Payables under
securities lendingtransactions

12,215

―

―

―

―

―

Borrowed money

220,838

120,313

119,679―――¥3,337,799¥310,851¥146,987

¥―

¥―

¥―

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.
Derivative transactions are listed under “Relating to derivative transactions.”(Note 2) Financial instruments, whose fair values are extremely difficult to determine, are recorded on the consolidatedbalance sheets are as follows: The following instruments are not included in ‘Assets (3) Securities’ in the abovetable showing the fair values of financial instruments as of March 31, 2021.
As of March 31, 2021

(Millions of yen)

Total

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

Unlisted equity securities *1 *2¥ 735

Contributions to unions

4,203

*3

Total

(Relating to Securities)*1 In addition to including the “Securities” listed on the consolidated balance sheets, this includes “Trading account securities.”*2 Subsidiary and affiliated company shares are listed as notes to the financial statements.

¥4,939

*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 current consolidated fiscal year, an impairment loss of ¥27 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.

(Note 3) Maturity analysis for monetary claims and securities with contractual maturities
As of March 31, 2021

Due from banks(Millions of yen)

Securities¥674,571

Over 1 year less
3 years

Over 3 years less
5 years

Over 5 years less
7 years

Over 7 years less10 years

Over 10 years

¥

¥

¥

¥

¥

―

―

―

―

―

98,204

184,046

108,905

159,344

203,487

97,130

645

3,254

1,487

105

―

―

Corporate bonds

645

3,254

1,487

105

―

―

Available-for-salesecurities that havematurities

97,559180,791

107,418

159,239

203,487

97,130Japanesegovernment bonds

60,70087,10052,00055,40028,00031,000

Municipal bonds

29,046

69,582

43,56463,78380,82356,640

Corporate bonds

7,813

15,914

6,872

22,67556,560

9,490

―

8,195

4,981

17,381

38,103―351,769

341,836

302,465

218,955

285,359

347,004

60,000

―

―

―

―

―

¥1,184,546¥525,882¥411,371¥378,300¥488,846¥444,134

Held-to-maturity

OthersLoans and bills
discounted *1
Central clearing
counterparty margin
requirement *2
Total

1 year or less
Deposits *Derivatives

1 year or less(Millions of yen)Over 1 year less
3 years

1. Trading securities
As of March 31, 2021

(Millions of yen)
Unrealized gains/losses recognized as income

Trading securities¥―

2. Held-to-maturity debt securities
As of March 31, 2021

(Millions of yen)
Carrying amount inconsolidated balance
sheets

Type

64
64

Differences

Fair value exceeded carrying amount:

Corporate bonds¥3,495¥3,514¥ 19

Fair value not exceeded carrying amount:

Corporate bonds

1,996

1,981

(14)

¥5,491¥5,496¥Total*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 ¥21,866 million, is not included in the above table. Loans that do not have contractual
maturities, amounting to ¥116,602 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.”

THE YAMANASHI CHUO BANK 2021

Fair value

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THE YAMANASHI CHUO BANK 2021

65

4

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

3. Available-for-sale securities
As of March 31, 2021

(Millions of yen)Type

Fair value inconsolidated balance
sheetsCost¥¥

500,595

491,057

9,538

Japanese Government bonds

304,318

296,748

7,569

Japanese municipal bonds

138,049

136,598

1,450Japanese corporate bonds

58,22757,709517

144,349

135,248

9,101

21,65920,778881(Relating to Money Held in Trust)

701,505

645,691

55,814

1. Money held in trust for investment

5,684

6,511

(826)

Other securities
Foreign securities
Sub-total
Japanese stocks

date decline by 50% or more compared with their acquisition costs.
(2) 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 deemednecessary after taking into consideration the financial standing and related factors of the issuer.

As of March 31, 2021

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

296,638

298,716(2,078)Japanese Government bonds

27,154

27,524(369)

Money held in trust for investment

Japanese municipal bonds

206,969

208,217(1,247)

2. Money held in trust to maturity

Japanese corporate bonds

62,51462,974(460)

295,417

304,482(9,065)

3. Other money held in trust (for objectives beside investment and held-to-maturity)

46,762

48,484(1,722)

Not applicable

597,741

609,710(11,969)¥1,299,247¥1,255,402¥ 43,844

Bonds total

Fair value notexceeded cost:(1) Across-the-board impairment losses shall be booked for securities whose fair values as of the consolidated balance sheet¥ 37,174

Bonds total

Fair value exceededcost:

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

19,385

Japanese stocks

56,560

Valuation differences

An impairment loss of ¥806 million (¥773 million in shares and ¥33 million in securities) was recognized during the fiscal year
ended March 31, 2021.

Other securities
Foreign securities
Sub-total
Total

Balance sheet amount¥5,000¥0

Not applicable(Relating to Net Unrealized Gains/Losses on Available-for-Sale Securities)
Available-for-sale securities were valued at market and net unrealized gains/losses on valuation were as follows:

4. Held-to-maturity debt securities sold

As of March 31, 2021

Not applicable(Millions of yen)Amounts

5. Available-for-sale securities soldFrom April 1, 2020 to March 31, 2021
Type

(Millions of yen)
Sales costs

Japanese stocks
Bonds total
Japanese Government bonds

Gross realized gains

Gross realized losses¥ 4,134

¥ 887

¥ 834

―

―

―

―

―

―

Japanese municipal bonds

―

―

―

Japanese corporate bonds

―

―

―

76,039

6,247

1,606

47,0552,768

453¥80,173¥7,135¥2,441Other securities
Foreign securities
Total

6. Securities for which the purpose for holding has changed
Not applicable

Valuation difference¥43,902

Other securities

43,902

Deferred tax liabilities

13,30930,592Net unrealized gains (before non-controlling interests)

197

Non-controlling interests¥30,395

Net unrealized gains on available-for-sale securities(Relating to Derivative Transactions)
1 Derivative instruments not accounted for as hedges
Regarding the derivative instruments which are not accounted for as hedge transactions, Contract Amount or Notional Amount,
Fair Value and Unrealized Gain or Loss for each type of derivative transactions, respectively, at the end of the consolidatedbalance sheet date, and Determination of fair value are as follows. Contract or Notional Amounts do not show market risk ofderivative instruments.

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 withthe acquisition costs, fair value is recognized in the consolidated balance sheets, and valuation difference is treated as an

66

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67

(1) Interest-rate related transaction(1) Interest-related derivative instruments

As of March 31, 2021

Not applicable(2) Currency-related derivative instruments
As of March 31, 2021

(Millions of yen)Type

Contract Amount or
Notional AmountOver 1 Year

Fair Value

Sold

―

―

―

―

Buy

―

―

―

―

―

―

―

―

Buy

―

―

―

―

¥31,613¥21,289¥(1,617)¥(1,617)

Sold

54,839―(1,968)(1,968)

Buy

1,849

―

35

35

Sold

―

―

―

―

Buy

―

―

―

―

Sold

―

―

―

―

Buy

―

―

―

―

―

¥(3,550)¥(3,550)

Currency swaps
Forward rate agreements

OTC

Principle methodof recording gains
and losses

Currency options
Sold

Currency options

Other

Total

¥

―

¥

Type

Main hedge object

Contract
amount, etc.

Contracts over one year

―

―

―

¥8,000¥8,000¥262

Fair value

Interest rate swap

Unrealized Gain/Loss

Currency futures
Financial
instruments
exchange(Millions of yen)

Hedge accounting
methodFixed income/Fluctuating
payment
Fluctuating income/Fixed
payment
Interest rate futures

Other securities(Liabilities)

―

―

―

Interest rate options

―

―

―

Other

―

―

―

―

―

―

―

―

―

―

¥262

Interest swap
Special treatment
as interest rate
swaps

Fixed income/Fluctuating
payment―

Fluctuating income/Fixed
payment

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.

(2) Currency-related transactions
Not applicable(3) Share-related transactions
Not applicable(4) Liability-related transactions
Not applicable

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

(Relating to Employees’ Retirement Benefits)(3) Stock-related derivative instruments

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

1. Outline of employees’ retirement benefits
contribution pension plan.

Not applicable

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

(4) Bond-related derivative instruments
Not applicable

A retirement benefit trust has been established within the defined-benefit corporate pension plan.

(5) Commodity-related derivative instruments

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.

Not applicable(6) Credit derivative transactions

2. Funded defined benefit pension plan

Not applicable(1) Reconciliation of retirement benefits obligations at beginning of year and end of year
From April 1, 2020 to March 31, 2021

2 Derivative Instruments accounted for as hedges
With regard to derivative transactions to which hedge accounting is applied, the method for measurement of the contract amounton the consolidated closing date for each type of transaction and hedge accounting method and principal amount determined in
the contract as well as fair value is as follows. Furthermore, the contract amount itself does not indicate the market risk associatedwith the derivative transaction.

(Millions of yen)

Retirement benefit obligations at beginning of year

¥31,023

Service cost

1,037Interest cost

117

Actuarial gains and losses(251)

Retirement benefits payment(1,179)

Past service cost

―
―

Other

¥30,747

Retirement benefits obligations at end of year

68

THE YAMANASHI CHUO BANK 2021

68

69

THE YAMANASHI CHUO BANK 202169

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

(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

From April 1, 2020 to March 31, 2021

(Millions of yen)

Pension assets at beginning of year

¥33,424

Expected return on plan assets

931

follows:
As of March 31, 2021

(Millions of yen)

Actuarial gains and losses

3,057

Employer's contribution

Unrecognized past service costs¥ (45)

1,006

Retirement benefits payment

Unrecognized actuarial gains and losses

2,218

(731)

Other

Other

―

Pension assets at end of year―

Retirement benefit costs of defined benefit plan

¥2,173¥37,689(3) Reconciliation of retirement benefits 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, 2021

(Millions of yen)

Retirement benefits obligations of funded plan

¥30,747

Pension assets

37,689(6,941)Retirement benefits obligations of unfunded plans―

Assets and liabilities recorded in consolidated balance sheets, net¥(6,941)(Millions of yen)

(7) Pension assets① The percentage of each main category for total pension assets is as follows:
As of March 31, 2021
Stocks

29%

Bonds

31

Life insurance general account

14

Other

26

Total

100%

Note: Included in total pension assets is 11% (compared with 10% in the previous fiscal year) for retirement benefit trusts
established in the corporate pension plan, and 29% (compared with 30% in the previous fiscal year) for retirement benefit
trusts established in the lump-sum retirement plan.

Liability of retirement benefits―

Assets of retirement benefits¥(6,941)

To determine the long-term expected rate of return on plan assets, the Bank considers the current and projected pension

Liabilities and assets recorded in the consolidated balance sheets, net¥(6,941)

assets allocations, as well as the current and expected long-term rate of return for the various assets that make up the pension② Method for calculating the long-term expected rate of return on plan assets

assets.

(4) Breakdown of retirement benefit costs
From April 1, 2020 to March 31, 2021

(8) Basis for calculating actuarial calculations(Millions of yen)

Service cost

¥1,037

Interest cost

117

Expected return on plan assets(931)

Actuarial gains and losses recorded in expenses

842

Past service costs recorded in expenses

(7)

Other

―

Retirement benefit costs of defined benefit plan

¥1,058Basis for calculating main actuarial calculations (weighted average)
From April 1, 2020 to March 31, 2021
Discount rate

0.3%

Long-term expected rate of return on plan assets

2.7

Rate of salary increase
Defined-benefit corporate pension plan

3.6

Lump-sum retirement plan

3.5%(5) Remeasurements of defined benefit plans
Breakdown of items (before tax-related effects) recorded in remeasurements of defined benefit plans are as follows:
From April 1, 2020 to March 31, 2021

(Millions of yen)

Past service costs¥

Actuarial gains and losses(4,151)Other

7

3. Defined contribution funds
The required contribution for the current consolidated fiscal year under the Bank’s defined-contribution pension plan is ¥199 million
compared with ¥199 million as of the end of the previous fiscal year.

―

Retirement benefit costs of defined benefit plan¥(4,144)

70

THE YAMANASHI CHUO BANK 2021

70

71

THE YAMANASHI CHUO BANK 2021

71

(Stock Options and Other Related Information)
3. Description of Restricted Stock Compensation Plan

1. Accounting line item and the amount of stock options charged as expenses
From April 1, 2020 to March 31, 2021

(Millions of yen)

General and administrative expenses¥44

Category and number of people
to whom restricted stockcompensation was granted
Type and number of shares
grantedGrant date
Eligible service period

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

Transfer restriction period

Type and number of shares granted as stock options
Date on which stock options were granted

No stock options were granted in the fiscal year

Vesting terms and conditions

ended March 31, 2021.

Conditions for removal oftransfer restrictions

Vesting period

Fair value per share at the grant
date (yen)Exercise period

Granted on August 7, 2020
The Bank’s directors (excluding outside directors): 9
The Bank’s executive officers:
9

Common stock: 53,300 shares
August 7, 2020
The period from the Bank’s 117th Annual General Meeting of Shareholders to its 118th
Annual General Meeting of Shareholders, which is scheduled to be held in June 2021
(The period for executive officers, is from July 1, 2020 to June 30, 2021.)
The period from the grant date of the restricted stock to the date of resignation orretirement of eligible individuals from the position of the Bank’s director, executive officer
or employee
During the period from the start of the transfer restriction period to the date on which thefirst subsequent Annual General Meeting of Shareholders of the Bank is held (The period
for executive officers is from July 1, 2020 to June 30, 2021.), the eligible individuals shallcontinuously hold the position of the Bank’s director, executive officer or employee.
840

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

(Relating to Tax Effect Accounts)(2) Changes in the size of stock options

1. The tax effects of significant temporary differences and tax loss carry-forwards which resulted in deferred tax assets and

The following describes changes in the size of stock options that existed during the fiscal year ended March 31, 2021. The

liabilities are as follows:

number of stock options is converted into the number of shares.

As of March 31, 2021

① Number of stock options
2016 Stock Options

2017 Stock Option

2018 Stock Option

2019 Stock Option(Millions of yen)

Deferred tax assets:¥

Net defined benefit liability

Stock options which are not yet vested (shares):

3,464

Allowance for possible loan losses

2,937

Losses on investment securities

1,550

As of March 31, 2019

―

―

―

―

Granted

―

―

―

―

Forfeited

―

―

―

―

Other

2,205

Sub-total

10,643

Valuation allowance(4,825)

Total deferred tax assets

5,818

Vested――――Balance of stock options not vested

―

―

―

―

8,640

10,26010,80029,900Stock options which have already been vested (shares):485

Depreciation

Deferred tax liabilities:

As of March 31, 2019
Vested――――Exercised

860

700

660

3,300

Forfeited

―

―

―

―

7,780

9,560

10,14026,600

Balance of stock options not exercised

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

Unrealized gains on available-for-sale securities(13,309)

Other(1,999)Total deferred tax liabilities(15,309)

Net deferred tax assets (figures in parentheses represent liabilities)¥ (9,491)

2. A reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in the accompanying
consolidated statements of income is as follows:
As of March 31, 2021

② Per share price information
2016 Stock Options
Exercise price (Yen)¥12017 Stock Option¥

12018 Stock Option¥

2019 Stock Option

1

¥

1

Average price per share upon exercise (Yen)

850

850

850

850

Fair value per share at the grant date (Yen)

2,025

2,115

2,050

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.

72
THE YAMANASHI CHUO BANK 2021

72

Normal effective statutory tax rate

30.4%

Valuation allowance

12.3

Income not taxable for income tax purposes(1.7)

Expenses not deductible for income tax purposes

0.4

Other – net

1.3

Actual effective tax rate

42.7%

73

THE YAMANASHI CHUO BANK 2021

73

(Relating to Asset Retirement Obligations)③ Companies, etc. with the same parent company as the company submitting consolidated financial statements, andNot applicablesubsidiaries, etc. of other related companies of the company submitting consolidated financial statements.
Not applicable(Relating to Investment and Rental Property)
Not applicable④ Related-party transactions involving directors, corporate auditors and major stockholders (individuals only) of the Bank.
From April 1, 2020 to March 31, 2021

(Segment Information by Type of Business)【Segment information】】(Millions of yen)

Relationship

Name

Address

Paid-in
capitalPosition

Officer or his/her
relatives r

Eiichiro
Yamadera――

Brother-in-lawof the Bank’s
Director

10

Manufacturing
and sale of soy
sauce and miso

Segment information is not shown in these statements, since the banking business is the only reportable segment.
】【Related information】
From April 1, 2020 to March 31, 2021
1. Information for service segment(Millions of yen)
Loans
Ordinary income from
customers

Securities investment¥18,244

Other¥18,815

Total¥12,541¥49,602

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.

Company, etc.
ITUTUYA Nirasaki
controlled by an
SHOUYU City,
officer or his/herCO., LTD. Yamanashi
relatives throughmajority ownership of (Note 2) Prefecture
voting rights

Voting Details ofTransaction Accounting Year-end
rightsbusiness
Transactions
amountnamebalance(%) relationship
0.11―

Lending

Lending

Lending

¥―

Loans

¥167

Interest
income2――

Lending

10

Loans

10

Interest
income0――Notes: 1. Transaction terms and policies for determining transaction terms
Transaction terms are determined in the same manner as with clients in general.
2. A relative of Masahiko Yamadera, a director of the Bank, owns a majority of voting rights.

(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(Per Share Information)
From April 1, 2020 to March 31, 2021

【Information about impairment loss of fixed assets in segment】】

Net assets per share

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

Profit per shareomitted here.

(Yen)¥6,849.57
96.92

Diluted net income per share
96.67
Note: The basis for calculating net income per share and diluted net income per share is presented as follows.

【Information about the amortization of goodwill and unamortized balance by reportable segment】】
Not applicable.

From April 1, 2020 to March 31, 2021

(Millions of yen)

Profit per share【Information about the gain recognized on negative goodwill by reportable segment】】

Profit attributable to shareholders of the parent

Not applicable.

Amount not attributable to owners of common stock【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.)¥ 3,090―

Profit attributable to shareholders of the parent related to common stock

3,090

Average balance of common stock (Thousands of shares)

31,886

Diluted profit per share
Adjustment amount of profit attributable to shareholders of the parent
Increase in the number of common stock (Thousands of shares)② Non-consolidated subsidiaries and related companies, etc. of the company submitting consolidated financial statements

83(Important Subsequent Events)
Not applicableNot applicable74

THE YAMANASHI CHUO BANK 2021

74

―
83

New share subscription rights (Thousands of shares)

Not applicable¥75

THE YAMANASHI CHUO BANK 2021

75

Corporate Data

Board of Directors and Corporate Auditors(as of March 31, 2021)(as of July 1, 2021): ¥15,400 million

Common Stock

Breakdown of Stockholders

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

Financial institutions 122,913
Securities companies 4,595
Other corporations
62,494Foreigners
34,815
Individuals and others 101,865

Total

326,682

Number of
Stockholders: 6,345

Stock Listing: First Section of the Tokyo Stock Exchange

Transfer Agent: Mitsubishi UFJ Trust & Banking Corporation

shares

37.62%
1.41%
19.13%
10.66%
31.18%* Shares (1 trading unit: 100 shares)
Note: The category “Individuals and others” contains treasury
stock of 8,765 trading units of shares.

ChairmanManaging Directors

Directors

Standing Corporate Auditors

Nakaba Shindo

Norihiko Tanaka
Fumihiko Furuya
Masahiko Yamadera

Michio Masukawa
Riyo Kano
Miki Ichikawa

Akira Omata
Kimihiro Asai

President

Mitsuyoshi Seki

Corporate Auditors

Senior Managing Director

Kouichiro Horiuchi
Yoshiyuki Nagahara
Minako Mizutani

Yoshiaki Furuya

Major Stockholders
Number of shares held
(thousands)

Percentage of
all shares issued (%)

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

1,976

6.19

The Yamanashi Chuo Bank, Ltd. Employees’ Stockholdings

1,289

4.04

Meiji Yasuda Life Insurance Company

1,209

3.79

Custody Bank of Japan, Ltd. (Trustee Account)

946

2.96

MUFG Bank, Ltd.

716

2.24

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

Daishi Hokuetsu Bank, Ltd.

439

1.37

8,839

27.70

Name

Total

Organization(as of July 1, 2021)

Annual General Meeting of Shareholders
Corporate Planning
Board of Directors

Chairman

Personnel Division
Planning and
Administration

Corporate
Administration

Deputy President
Senior Managing Director

Credit Screening

Credit Screening Division

Financial Markets

International and Treasury Division

Managing Directors

Business Promotion Division

2,400
2,000
1,600

Board of Managing Directors

Tokyo Stock Price Index (TOPIX)

800
400
4,000
3,000

Yamanashi Chuo Bank’s share price (yen)Trading volume (thousands)

1,000
May

Jun.

Jul.

Aug.

Sep.

Oct.

Consultation Sales Division

Non-Standing Director

Western Tokyo Consultation Sales Division

Advise Report

Operation Administration Division

Nomination andRemuneration Advisory
Committee
Apr.
2019

Sales Promotion Planning DivisionMarketing

2,000

0

Business Planningand Control
Department

Directors

1,200Management Control Division
General Affairs Division

President

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

Corporate Planning Division

Nov.

Dec.

Jan.
2020

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.
2021

Feb.

Operations

Systems Administration Division
Central Operations Division

Mar.

Board of Corporate Auditors
Secretariat
Standing Corporate Auditors

Consolidated Subsidiaries
Tokyo Stock
Price Index (TOPIX)
Name

1617.93
Yamanashi Chuo Guarantee
Co., Ltd.
1512.28
Yamanashi Chugin Lease Co., Ltd.
1551.14
Yamanashi Chugin DC Card
Co., Ltd.
1565.141511.86
Yamanashi Chugin Management Consulting Co., Ltd.
1587.80
1667.011699.36
1721.36

Chuo
Capital Chuo Bank’sYamanashi(yen)
Yamanashi
share price(Millions of yen)

1302
1209
20
1160
20
1138
938
100
1028
1087
THE YAMANASHI CHUO BANK 2021
1149
76
1170

20

Bank’s share (%)

99.8
66.0
67.5
87.5

Trading
volume (thousands)
Linesof business

629.5
Loan guarantees
699.7
Leasing739.9
Credit cards 1031.4
878.4
Consulting, economic
research
1038.8
825.8
840.1
981.4

Tokyo Liaison Office

Corporate Auditors
Office of Corporate Auditors

Auditing Division

Auditing

Branches
THE YAMANASHI CHUO BANK 2021

77

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