Annual
Report2023

THE PRINCIPLES OF LABOUR BANKS“L

abour Banks are financial cooperatives that“L

abour Banks consider their objectives to be

cultivate the dreams and ideals of our workers.”

twofold: promote economic, welfare,environmental and cultural activities by theirmembers; and create, by working together,a society in which all people can live in happiness.”“Labour Banks are formed from worker-basedorganizations and organizations that keep theirdoors open to a wide range of citizens.
This network of member organizations is theessence of the Labour Banks.”“Members participate in the administration of Labour
Banks as equals, seeking to improve the activities
and projects of the banks. Sincerity, fairness, andopenness are key Labour Bank principles.
By their commitment to sound management,
Labour Banks will endeavour to keep faith with
their members.”

CONTENTS
03

Message from the President

06

Highlights of Fiscal 2022

07

About us

12

History of Labour Banks

14

Services of Labour Banks

16

Labour Bank Efforts to Protect Workers   from Natural Disasters and Infectious Disease17

Our Efforts for Realizing the Labour Bank’s Vision

22

Labour Bank Actions for the SDGs

24

Cooperation with Domestic and International Cooperatives

25

Consolidated Balance Sheet for All Labour Banks

26

Consolidated Statements of Income for All Labour Banks

27

Status of Individual Labour Banks

28

Balance Sheet for the Rokinren Bank

29

Statements of Income for the Rokinren Bank

30

Officers of the National Association of Labour BanksMESSAGE FROM THE PRESIDENT

M

essage for the Fiscal Year 2023

Since the Labour Banks were founded in 1950,
following the principles of “cultivating the dreams
and ideals of workers” and “contributing to the creation of an inclusive society” while constantly standing on the side of workers and in step with thechanging of the times, we have met the diverse
needs of workers, including loans for housing andeducation, asset formation, and others, in accordance with their life plans.
At present, the 13 banks nationwide operate
Yasunori Nishida
President
National Association of Labour Banks

605 branches from Hokkaido to Okinawa, including
outlying islands, serving 11,820,000 customers witha total deposit balance of 22.9 trillion yen and out-

standing loans of 15.2 trillion yen.
On May 8, 2023, COVID-19 was downgraded to a Category 5 infectious disease. Three years
after the first outbreak, the COVID-19 infection has come to an end for the time being to a certain
degree, and we can see from the revival of personal consumption and inbound demand that moves
toward normalization have begun to progress in various aspects of society and the economy.
At the same time, turning our eyes to the world situation, crises regarding social sustainability,
such as the invasion of Ukraine by Russia, the increasing severity of climate change, and the issue of
disparities that are widening around the world, are occurring on a global scale. Domestically inJapan also, an unstable and uncertain social situation continues, with the frequent occurrence andgrowing enormity of damage from natural disasters such as earthquakes and large-scale typhoons,as well as the expansion of regional disparities due to the advance of poverty issues and depopulation.

Labour Banks Annual Report 2023

03

In this situation, nationwide Labour Banks, are taking the initiative to create a ﬂow where important loans to workers, as Money with Significance, are used to realize a sustainable and inclusive
society in the form of special loans to protect the daily lives of workers facing reductions in income;loans to support the rebuilding of lives of people affected by natural and other disasters; andsupport for the social sector, which is making efforts for social problems such as dealing with multiple debt liability or support for children and people who are facing difficulties in daily life.
Along with our members, I would like to go forward in cooperation with our colleagues whoshare our philosophy, including organizations engaged in worker welfare and cooperative unions,by putting into practice the social virtuous circle that can arise from this Money with Significance.
I believe that the path to “the realization of a sustainable society” as described in the SDGs is
precisely the promotion of initiatives to contribute to such a “realization of an inclusive society.”
Labour Banks will go forward by performing a trusted role within the circles of “relationships” in“valuing relationships between people and their communities.”
In the future, as in the past, Labour Banks will, while making ﬂexible responses to social changes,
conduct activities that stand “right by the side of you, the working person” to fulfil our mission as
Labour Banks.

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Labour Banks Annual Report 2023

HIGHLIGHTS OF FISCAL 2022(¥ mil.)(US$ thous.)

2018

2019

2020

2021

2022

2022

Total Assets

23,413,487

23,855,644

24,406,357

24,461,697

24,996,782

187,945,732

Total Liabilities

22,217,440

22,669,009

23,179,079

23,234,265

23,805,444

178,988,307

Ordinary Income

275,444276,411271,626

267,627

277,059

2,083,155

Operating Income

272,612274,703

268,351

266,190274,388

2,063,069

Net Profit

28,83528,37029,45831,77032,080241,205¥133.00=US$1
Fiscal year ended March 31.

30

25

24
25

23

22
20
21

20

15

19

18

10
2018

2019

2020
Total Liabilities (¥ tril.)
Total Assets (¥ tril.)

2021

2022

2018

2019

2020

2021

2022

Net Profit (¥ bil.)Labour Banks Annual Report 2023

05

ABOUT US
Labour Banks are financial institutions organized as cooperatives, created by labour unions andconsumer cooperatives who pool funds to assist each other. Financial institutions are founded by
specific laws and Labour Banks are established in accordance with the Labour Bank Act (enacted in
1953), with its business license issued by the Prime Minister and Minister of Health, Labour andWelfare.
The Labour Bank Act stipulates the principles for the operation of our business: (1) activities
geared toward profit-making cannot be undertaken; (2) services are to be provided directly tomembers and not for the benefit of special members; and (3) Labour Banks must maintain a politically neutral position.
Moreover, the goals of Labour Banks are to contribute to the improvement of the economic
status of workers, as stipulated in Article 1 of the Labour Bank Act.

1. Basic StanceObjectives

Labour Banks are ﬁnancial institutions organized as cooperatives, created by Labour unions
and consumer cooperatives who pool funds to assist each other. We are striving to create asociety in which workers and their families can live in security and comfort. Of the numerous
ﬁnancial institutions in Japan, Labour Banks are the only ones purely working for people’s
welfare.

GovernanceLabour Banks are governed in an equitable and democratic manner, and not for
proﬁt-making purposes, in accordance with the Labour Bank Act. The circle of people whoshare an interest in the unique form of governance of Labour Banks is expanding throughout
Japan. Labour Banks are used widely by the roughly 11 million constituents belonging togroup members such as labour unions and consumer cooperatives.

Operations

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Labour Banks Annual Report 2023

Labour Banks’ operations differ very little from those of ordinary ﬁnancial institutions: taking
deposits, offering loans, and providing various services. However, the funds deposited byworkers are used to ﬁnance homes, cars, education, and childcare of fellow workers and theirfamilies and serve to make the lives of workers even more enriched.

2. Social Role
The Labour Banks constantly consider the social role they should perform as welfare financial
institutions organized as cooperatives. For instance, with regard to providing support for workers’
livelihoods, we are supporting the daily lives of people who are using Labour Banks, such as
members of labour unions and consumer cooperatives, through the three actions of planning livelihoods, protecting livelihoods and improving livelihoods. In addition, Labour Banks also make efforts
to build and improve various kinds of systems in cooperation with social welfare organizations, thecentral government and local municipalities.
1. Providing support for workers’ livelihoods
To resolve anxieties about money, we support the daily lives of workers throughout their lifetimes in the three endeavours ofplanning livelihoods, protecting livelihoods and improving livelihoods.
2. Displaying the Functions of the Welfare Financial Institution
We are providing such services as low-interest welfare loans in cooperation with the government and municipalities to support
workers.
3. Support of Labour Unions
We provide various products and services that support the life plans of union members, and are also providing support for theautonomous welfare activities of labour unions.
4. Offer of Low-Interest Loan Products
Displaying our uniqueness as non-profit welfare financial institutions, we offer low-interest loan products in fields such as credit
cards, cars, housing and education.
5. Expansion of Users
We are making efforts to enable access by people working at non-unionized workplaces or people doing part-time work, fixedterm contract work, or who are dispatched workers or retired persons.
6. Aid for Welfare Organizations
We perform the role of a financial centre for welfare organizations, providing business loans to consumer cooperatives, NPOs
and others.

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07

7. Prevention of Multiple Debt Liabilities
To prevent an increase in multiple debtors, we are disseminating information on cautions regarding card loans and credit carduse, and are responding to consultations and refinancing on a nationwide basis.
8. Improvements in Zaikei (Asset Formation) Savings Programs
To improve zaikei savings programs, we are making efforts to build better asset formation systems by, for example, cooperatingwith labour welfare organizations to submit petitions to the central government .
9. Support for Reviews of Retirement Allowances and Company Pensions
As well as supporting efforts to protect retirement allowances and company pensions, we are also helping people to operate
their valuable funds which will support their daily living expenses after retirement.

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Labour Banks Annual Report 2023

3. Organizational structure
Labour Banks are financial institutions organized as cooperatives, which are not managed forprofit-making. Unlike conventional commercial banks which seek profit, Labour Banks value relationships between people and their communities. As such, Labour Banks work together withmembers to expand welfare-related financing to meet the daily needs of workers and the welfare
needs of communities.

Labour Banks

Commercial Banks

Cooperative

Stock corporation

Financing for welfare

Financing mainly for companies- Members (workers) are able to equally participate in
the governance through the one member-one votesystem- Objective is not proﬁt-making. The surpluses are paidback to members.

-Financing mainly to workers-Meet the lifestyle and welfare needs of workers- The number of shares held inﬂuences the governancethrough the one share-one vote system.
- Objective is proﬁt-making. Shareholders are paid
dividends out of proﬁts according to number ofshares.

- Financing mainly to companies- Meet ﬁnancial needs of companies

BANK

Members

Labour Banks

Shareholders

Bank

Companies

Labour Banks Annual Report 2023

09

4. Members
Labour Bank membership is composed mainly of institutions such as labour unions and consumer cooperatives that invest in the Labour Banks. Individual workers may, as constituents of themember organizations, use the services of Labour Banks. Moreover, individuals who do not havelabour unions in their workplaces or have not joined consumer cooperatives, are also able to use theservices of Labour Banks by making individual investments in Labour Banks or by joining the “Tomono Kai” workers’ groups.

Labour Banks

Investments

Deposits
and loans

Investments

Deposits
and loans

Investments

Deposits
and loans

Members
Labour unions

Consumer cooperatives

Individuals

Labour union members

Consumer cooperative members

Individuals residing or
employed in communities
where Labour Banks operate

Indirect members

Constituents
Total Institutional Members

48,523 groups

Total Individual Members

55,924 people

Total Constituents

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Labour Banks Annual Report 2023

11,820,909 people(As of the end of March 2023)

HISTORY OF LABOUR BANKS

1. Overview
The history of foundation of Labour Banks goes back to 1950, after the country’s defeat in WorldWar II. Japan was in a rush to rebuild its economy at the time, and much of the funds that financial
institutions collected from the nation’s citizens were invested in the nationalized industries andprivate corporations, rarely being lent to workers. As such, workers had no recourse but to borrowfrom loan sharks and pawnshops at high interest rates and had a hard time with interest burdens
and harsh collection methods.

Hokkaido

Nigata-ken
Nagano-ken

TohokuHokuriku
Chugoku

Kinki

Chuo
Tokai

Shizuoka-ken

Shikoku
KyushuOkinawa-ken

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11

It was under these circumstances that in 1950, the Consumer’s Co-operative Union in Okayama
and labour unions in Hyogo made separate calls for establishing banks for workers, leading to theestablishment of Labour Banks.
These two Labour Banks in Okayama and Hyogo were established prior to the Labour Bank Act
being enacted, so they were set up in accordance with the Small and Medium-Sized Enterprise Cooperatives Act as credit cooperatives.
Following the enactment of the Labour Bank Act in 1953, the banks set up as credit cooperatives
became Labour Banks. In 1966, with the establishment of a Labour Bank in Okinawa Prefecture,
which was occupied by the U.S. forces, Labour Banks were established in all 47 prefectures.
Since then, with the establishment of the Kinki Labour Bank in 1998, mergers proceeded, bringing the nationwide total to the current 13, each run as an independent entity.

2. Current status
The 13 Labour Banks across Japan have a total of 605 branches as of the end of March 2023.
The branches cover all of Japan, from the Wakkanai Branch of the Hokkaido Labour Bank at thenorthern tip, to the Yaeyama Branch of the Okinawa-ken Labour Bank at the southern tip.

3. Central administrative organ of Labour Banks
The National Association of Labour Banks and the Rokinren Bank (the Federation of Labour Banks)
serve as central administrative organs for Labour Banks.
The main role of the National Association of Labour Banks, founded in 1951, is to develop theoverall policies and positions of Labour Banks’ business as well as to provide management guidance to and communicate with all 13 Labour Banks. Additionally, it engages in strengthening ties
with other cooperatives both domestically and internationally.
The Rokinren Bank, founded in 1955, is a central organization whose main role is to adjust thedemand and supply of funds and provide centralized data processing for Labour Banks, develop
and manage a unified online system, etc.
The National Association of Labour Banks and the Rokinren Bank act as a safety net for all 13
Labour Banks by building a mutual support system and providing support for business operations.

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Labour Banks Annual Report 2023

SERVICES OF LABOUR BANKS
Deposits
Item

Service

Packaged AccountCombines ordinary and time deposits. The overdraft function which uses time deposits as security, makes loans
automatically available.

Ordinary Deposit

Deposits and withdrawals can be made anytime. Used for receiving wages and automatic payment of utility charges,
etc.

Current Deposit

Deposit for check payments: used as fund settling accounts of group members, etc.

Saving Deposit

Deposit that combines the freedom of deposits and withdrawals of ordinary deposits and the advantage of interest
rates stepped in accordance with the deposited balance.

Deposit at Notice

Used to handle sizable funds for a short period.

“Super” Time Deposit

Used for making lump sum deposits which are left untouched until maturation.

Maturity-Designated “Wide”
Time Deposit

Deposit which can be withdrawn anytime after a lapse of one year. One-year compounded interest accrued.

Floating-Rate Time Deposit

Time deposit to which a new interest rate is applied every six months.

Large-Scale Time Deposit

Used to operate substantial funds over ¥10 million.

“Zaikei” Deposit(property accumulation deposit)

Based on the Act for Promotion of Worker’s Property Accumulation, which has three types of accounts: General Zaikei,
Zaikei Annuity and Zaikei Housing. Of those accounts, a combined savings in Zaikei Annuity and Zaikei Housing of up
to ¥5.5 million are tax-exempt.

“Ace” Deposit

An installment time deposit similar to the property-accumulation deposit accounts. Non-fixed-date, specified-dateand pension types are available.

Negotiable Certificate of Deposit

Deposit for organizations that can be opened with an initial amount exceeding ¥50 million. Unlike typical time
deposits, this savings certificate is negotiable if procedures designated by Labour Banks are followed, as it does notcome with a provision prohibiting negotiations.

Adult Guardianship System
Support Savings

This is a savings account for people who are using the adult guardianship system for separate management of acustomer’s money that is not being used on a daily basis. The Labour Bank will open an account and carry outtransactions such as deposits based on a directive issued by the family court, thus protecting the customer’s valuableassets.

Loans
Item

Service

Card Loan (My Plan)

Loan and repayment can be made by ATM and Rokin Direct (Internet banking). Useful for sudden, unforeseen
expenditures.

Car LoanCan be used not only for car purchase but also for motorcycle purchase and costs for obtaining a driver’s license, etc.

Educational Loan

Low-interest loan, available for any purpose related to education, such as enrollment fees and tuition.

Housing Loan

Can be used to build or purchase new housing or enlarge/rebuild housing.

Workers’ Daily Life Support Special Loan
System

A system for review of the repayment conditions of outstanding loans for workers who are facing difficulties whenlosing employment or when their income is reduced due to circumstances at their place of employment.

Disaster Support Loan

Low-interest loan for the support of people affected by natural disasters such as earthquakes, typhoons, heavy
rainfall, etc.

Loan System for Funds to Support Job
Seekers

System established as a further support measure in cases where money for daily life expenses, etc. is lacking during
vocational training due to vocational training benefits from the government’s “Support System for Job Seekers”
alone being insufficient for daily life.

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13

Entrance Fee Loan System forJapan Student Services Organization
Scholarship Students

Loan system for persons who have applied for the Scholarship with Specially Increased Loan Amount for University
Entrance who require funds at the time of university entrance until the Increased Amount Scholarship is issued. The
loan covers only an amount up to the Increased Amount Scholarship to be issued.

NPO Project Support Loan

Loan System exclusively for NPOs with the goal of supporting the activities of NPOs aiming to improve community
welfare.

OthersItem

Service

Domestic Exchange

Remittance can be made to any financial institution within the country.

Account Transfer

Payments for utilities – such as electricity, gas, water, telephone, credit cards, and various insurance
premiums – can be automatically deducted from an ordinary deposit account.

Salary Deposit

Account holders can receive salaries in the designated deposit account.

Annuity Receipt

Various public annuities, mutual aid annuities, etc. can be received through a designated account.

Cash Advance

Money deposited can be withdrawn with a Labour Bank cash card from an ATM installed at any Labour Bank, as well
as from financial institutions and convenience stores across the country.

Debit Card

This is a service where payments for shopping and dining can be made with your Labour Bank cash card in storeswith the “J-Debit” mark, without any transaction fee charges.

Internet Banking(Rokin Direct)

Functions such as bank transfers and balance checking can be performed from a computer or smartphone that canaccess the internet.

Rokin App

Application that combines various functions, making it easy to check balances and the details of account activity, andto use the Smartphone camera function to pay taxes, etc.

OTC Sales of Japanese Government
Bonds

Japanese government bonds (JGBs) with two-year and 10-year maturities as well as JGBs with maturities of 3, 5, and10 years for retail investors are sold over the counters (OTC) of Labour Bank outlets. Of these, the 10-year JGBs forretail investors carry variable coupon rates that are reviewed every six months.

OTC Sales of Investment Trusts

Investment trust instruments, established and managed by investment trust management companies, are sold overthe counters of Labour Bank outlets in order to support asset management in accordance with life plans. We are also
handling NISA and Tsumitate NISA.

iDeCo

Private pension system operated under the Defined Contribution Pension Act. Self-funded and self-operated. Makes
use of the system’s referential tax treatment where management gains are tax exempt, etc.

Credit Cards

The “Labour Bank UC Card” is a prominent credit card of the UC group. It is also linked to Visa and Mastercard.

Agency BusinessThis organization provides services on behalf of the Japan Housing Finance Agency and other public financial
institutions.

OTC Sales of Mutual Assistance &Insurance

Fire insurance, fire mutual assistance, medical insurance and life insurance exclusive to persons who have taken out
Labour Bank housing loans are also handled.

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Labour Banks Annual Report 2023

LABOUR BANK EFFORTS TO PROTECT WORKERS FROM
NATURAL DISASTERS AND INFECTIOUS DISEASE
1. Special Loan System to Support the Livelihoods of Workers at Times of Natural
Disasters
Nationwide Labour Banks, from the viewpoint of implementing support that precisely fulfils themission of Labour Banks for people affected by frequent natural disasters, as well as handling (bothsecured and unsecured) Disaster Support Loans that can be used as daily life funds needed for disas-

ter recovery or recovery construction expenditures for repairs and improvements to disaster-affected housing, etc., we have also established a measure for the exemption of transfer fees related to
cash transfers to natural disaster relief donation accounts operated by member organizations andothers.

2. Responses to the Spread of the New Coronavirus Infection
Nationwide Labour Banks have created a unified loan system and are making efforts to support
the daily lives of workers who are facing anxieties due to the corona pandemic from the viewpointof daily life support for member union members whose income has been reduced due to the impactof the spread of the COVID-19 infection.
The accumulated amount of new loans in the period from April 2020 to the end of March 2023
was approximately 35.3 billion yen and repayment conditions were relaxed for a total of outstanding 3,997 loans (including products handled by individual banks).
We are also taking steps to support the daily lives of all workers, for instance by handling partner
loan systems in cooperation with local municipalities.

Labour Banks Annual Report 2023

15

OUR EFFORTS FOR REALIZINGTHE LABOUR BANK'S VISION
1. What is the Rokin Vision?
Japan is now in transition to a decreasing birth rate, aging population and population decline
society, which has never been experienced before. In this change in the social environment, Labour
Banks will further strengthen cooperation with our members and will display the true value of a cooperatively organized welfare finance institution that is the most accessible and trusted by all
workers, including the workers themselves and their families, retirees, job seekers, etc. This vision
describes the image Labour Banks aim for in the ten years after 2015, as Japanese society undergoes great changes. The 13 Labour Banks nationwide, the Association and Federation share thisvision as the vision of the whole, and will gather together to take action toward realization of thevision with the total power of the Labour Banks.
Our commitment:- We will support workers’ livelihoods throughout their life
- We will fulfil our role as providers of core financial functions for the non-profit and cooperative sector- We will contribute to creating an inclusive society by connecting people with one another and to their communities
Further Development of the Movement and Business through Participation of the Members
Labour Banks were established independently by workers for their welfare at a time when they
were unable to receive loans from financial institutions after World War II. Labour unions that are
members have since actively participated in Labour Bank’s business operations as part of theirlabour movement in order to protect and improve the livelihood of workers.
As people working in non-regular employment increase and wage gaps widen, the situation surrounding workers has become increasingly challenging. Under such circumstances, the meaning ofpromoting the Labour Banks as a team with members needs to be revisited so that Labour Banks
can make efforts to solve issues that workers face through that partnership.
Labour Banks, as Japan’s only specialized financial institution for workers, will continue to be asource of support for the independent welfare activities of members by providing services and promoting movements that cater to the needs of the times while honouring the spirit of its founding.

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Labour Banks Annual Report 2023

The most trusted, and most accessible ﬁnancial institutionthat cares for the worker’s welfare

Inclusive society where people support one another
Strengthen ties with members

Develop Labour Bank’s activities
in communities

Strengthen ties with members, work together tosolve challenges that workers face, and support
independent welfare activities that members
engage in.

Develop Labour Bank’s activities within communities, while enhancing and expanding workers’
mutual-aid and activities, along with strengthening
ties with the non-proﬁt and cooperative sector.

Provide support through ﬁnancial functions
Our role of providing high-quality ﬁnancial services

Connect people through information
Our role of connecting people with one another,
as well as with their communities¥- Provide appropriate ﬁnancial services for meeting
lifestyle and life stage needs of workers- Offer core ﬁnancial functions to the non-proﬁt andcooperative sector- Provide information to enable everyone to live witha sense of security and fulﬁlment within theircommunities

Labour Banks Annual Report 2023

17

2. Our Efforts for Realizing the Labour Bank’s Vision[Providing Support for Workers’ Livelihoods]
Labour Banks in Japan are engaged in supporting the workers’ livelihood throughout their lifetime, with three pillars of support provided: planning livelihoods, improving livelihoods, and protecting livelihoods.
For money related issues pertaining to the workers’ livelihood, Labour Banks work in partnership

Members,
Promotional Organization- Educate consumers and students on ﬁnancial
products and services- Offer consultations for ﬁnancial planning- Planned savings and asset building- Reﬁnance high-interest loans

Labour Banks
Collaboration-Hold study groups and consultations-Provide written material and information-Introduce Labour Bank products, etc.

Labour union member

Livelihood
planning

Livelihood
improvement

Livelihood
protection

Three pillars of providing livelihood support

18

Labour Banks Annual Report 2023

with members and provide guidance and advice.
The issue of multiple debt has been a social problem from long ago, which Labour Banks werequick to address. Awareness campaigns to help workers avoid falling into multiple debt, as well as
assisting those who had fallen into multiple debt, are some examples of efforts that have been
made.
In recent years, high-interest credit card loans have increased and surpassed consumer loans.
In order to avoid turning this credit card loan issue into a new social problem, Labour Banks encourage high-interest credit card loan users to refinance with Labour Bank loans that offer lower
interest, as part of efforts to support the workers’ livelihood.

3. Our Efforts for Realizing the Labour Bank’s Vision[Cooperation with the Non-profit and Cooperative Sector]
As stated in the Vision Statement, Labour Banks place value on connecting people with one
another and to their communities, as a way to contribute to building an inclusive society. We support
solving various issues by building a cooperative network with community-based organizations, encouraging collaboration between organizations, and providing information needed by residents.
The Loan to Support NPO Project was started in April 2000 by the Chuo Labour Bank and Kinki
Labour Bank for the purpose of supporting registered non-profit organizations (NPOs) through financing, as we are financial cooperatives that strives to create a society where workers and theirfamilies can live with a sense of security and comfort. This loan is now offered at all Labour Banks.

4. Our Efforts for Realizing the Labour Bank’s Vision[Creation of a Social Virtuous Cycle through Money with Significance]
Labour Banks put to use the funds we accept as deposits from our members and constituents toprovide loans, such as housing loans, educational loans, and car loans, that are Money with Significance in line with the Labour Banks’ principles and vision.
While concentrating and making efficient use of surplus funds available for investment otherthan loans, the Rokinren Bank (the Federation of Labour Banks) practices ESG investment that takes into
consideration the efforts toward ESG (E: environment, S: society, G: corporate governance) issues by investee companies. On behalf of all Labour Banks, we are also a signatory to the Principles for Re-

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sponsible Investment (PRI) proposed by the United Nations. In addition, nationwide Labour Banks
have signed the "Principles for Financial Action for the 21st Century" (Principles for Financial Action
Towards a Sustainable Society), which were formulated as an action guideline for financial institutions.

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Labour Banks Annual Report 2023

LABOUR BANK ACTIONS FOR THE SDGs
1. Labour Bank SDGs Action Plan
The SDGs slogan of “No one will be left behind,” as well as its goal of making financial services
available to all who need it, which is the concept of financial inclusion, matches the history, principles and vision that Labour Banks are founded on. In accordance with this awareness, the Labour
Banks, based on the “Labour Bank SDGs Action Plan” formulated in March 2019, and through diligent pursuit of the Labour Banks’ mission of facilitating improvements in the daily lives of workers
through the Labour Bank movement, we will go forward with our efforts to perform our role andattain the SDGs in a manner that is expected of Labour Banks as cooperative financial institutions.

2. Labour Bank SDGs Report Issued
Based on the “Labour Bank SDGs Action Guidelines” formulated in March 2019, the “Labour
Bank SDGs Report 2023,” which summarizes the activities of nationwide Labour Banks in FY2022,
was issued in May 2023. The report introduces the characteristic activities rooted in the communities that are practiced by the Labour Banks in cooperation with labour unions, consumer cooperatives, organizations related to worker welfare, NPOs, municipalities and others.

3. Guidelines Prohibiting All Forms of Harassment in the 13 Labour Banks
To secure a working environment in which all officers and employees can work with peace ofmind free from all forms of harassment, Labour Banks have formulated the “Guidelines Prohibiting
All Forms of Harassment in the 13 Labour Banks,” which are unified guidelines that apply to all 13
Labour Banks. The guidelines have broadly incorporated the content of the International Labour
Organization (ILO) Convention No. 190, and the 13 Labour Banks nationwide, with their central organization and related organizations, and with labour and management acting in unity, will take action
toward the realization of the “elimination of all forms of harassment” based on these guidelines.
In addition, these guidelines have been featured in the ILO Convention No. 190 guidebook (Violence and harassment in the world of work: A guide on Convention No. 190), prepared by the ILO Head-quarters, and on the ILO website social finance newsletter.
Labour Banks aim to “eliminate all forms of harassment” by ensuring that each and every official
and employee understands and acts upon the spirit of these “Guidelines.”Labour Banks Annual Report 2023

21

What are the SDGs?
The Sustainable Development Goals(SDGs) are international goals for theperiod 2016 to 2030 that were laid downin the 2030 Agenda for Sustainable
Development adopted by the United
Nations Summit in September 2015. The
SDGs consist of 17 goals, such as “endpoverty” and “end hunger,” and a total of
169 targets (individual goals) that havebeen set for all the goals. The importanceof the SDGs has been recognized globally
and Japan is also expected to actively
promote the attainment of the SDGs.

The Labour Bank SDGs Action Guidelines– March 2019 –Labour Banks, as non-proﬁt cooperative ﬁnancial institutions for workers, take on the task of support
for improvements in the daily lives of workers throughout their lifetimes based on the“Labour Bank Principles” and the “Labour Bank Vision” for the realization of these principles. Labour
Banks will aim toward the attainment of the SDGs though a further strengthening and thoroughgoing
implementation of these activities, striving to resolve the various social issues surrounding workers.
Labour Banks will create a flow of money that contributes to the realization of a sustainable society by
utilizing the valued funds of workers as, among others, ﬁnancing for improvements in the daily lives of
the workers themselves and in environmental, social and governance (ESG) investment, which has
consideration for society and the environment.
Labour Banks will strengthen their network with the members of trade unions and consumer cooperatives; non-proﬁt, cooperative sector organizations related to worker welfare, such as collectives, NPOs,
and social welfare corporations; associations and foundations; municipalities, and others, and will
cooperate with these organizations in the work toward the resolution of social issues such as community welfare, education, environment, natural disasters and other issues.
Labour Banks will publicize the achievements of various eﬀorts toward attainment of the SDGs and will
expand the circle of sympathy with the attainment of the SDGs by informing the broader society,including members and workers, that using Labour Banks will lead to advances toward the SDGs.

22

Labour Banks Annual Report 2023

COOPERATION WITH DOMESTIC AND
INTERNATIONAL COOPERATIVESLabour Banks value partnerships with domestic and international cooperatives, as we are striving tocreate a society in which fellow workers and their families can live with a sense security and comfort.

Membership in the International Co-operative Alliance (ICA)
The National Association of Labour Banks became a member of the ICA in September 2010 topromote international cooperation among cooperatives.
The ICA was established in 1895 in London as an organization for cooperatives worldwide, with
headquarters currently based in Brussels, Belgium.
National level cooperatives and international organizations from a wide variety of fields such as
agriculture, forestry and fisheries; consumers; credit and savings; insurance; etc., join as members
from around the globe. The ICA is recognized by the United Nations as the largest non-governmental organization in the world.

Affiliation with the Japan Co-operative Alliance (JCA)
Continuing on from the inter-cooperative union cooperation and international cooperative union
movement pursued by the former Japan Joint Committee of Co-operatives (JJC)*, JCA is an organization launched on April 1, 2018 with the goal of elevating the shared value of cooperatives in communities. The National Association of Labour Banks was affiliated to JJC in 2010, continues this affiliation with JCA and is tackling various community issues while cooperating with Japan’s
cooperative unions.

* The JJC was established in 1956 to strengthen cooperation among the ICA member organizations for domestic and international cooperative
activities. JJC had been conducting collaborative projects related to the international activities of cooperatives, such as participation in the ICA General
Assembly. JJC rebranded itself as a new collaborative organization called “Japan Co-operative Alliance (JCA)” in April 2018 to elevate the shared valueof cooperatives within communities and fulﬁl its role and potential in realizing sustainable societies.

Labour Banks Annual Report 2023

23

CONSOLIDATED BALANCE SHEETFOR ALL LABOUR BANKSASSETS2022

Due from banks
Call loans
Monetary claims purchased
Money in trusts
Securities
Loans
OthersTangible fixed assets
Intangible fixed assets
Prepaid pension costs
Deferred tax assets
Deferred tax assets for land revaluation
Customers' liabilities for guarantees
Allowance for loan losses
Other allowances
Total assets

Demand deposits
Borrowed money
Payables under securities lending transactions
Other liabilities
Reserve for bonus payments
Provision for employee retirement benefits
Provision for director retirement benefits
Other reserves
Reserves under the special laws
Deferred tax debt
Deferred tax debt related to revaluation
Guarantees
Total liabilities

5,703,886

44,864,237

8,840

9,596

66,467

3,261,438

24,415,110-

11,559Earned surplus
Of which, unappropriated surplus for the term
Unappropriated share
Unrealized gains and losses on other securities
Deferred hedge gains and losses
Land revaluation excess
Members' net equity
Total liabilities and members' net equity

24

Labour Banks Annual Report 2023

86,915

12,595

15,290,523

15,019,047

114,966,345

144,158

143,105

1,083,899

165,956

1,247,793

164,626

2,698

20,292

2,731

5,963

44,8383,910

18,616-

5,601

139,972

2,290

13,971

-

-

1,858

-13,801-14,628-103,773¥24,996,782¥24,461,697$187,945,732

-

-

-



(¥ mil.)(US$ thous.)

2022

2021

22,959,777

22,623,883

172,629,907

14,584,386

14,746,055

109,657,042

157,463

50,501

1,183,937

8,375,390

62,972,864

7,877,827

580,671

4,365,953

441,265

46,653

350,780

47,835

5,438

40,892

5,405

44,79745,808336,822

1,413

1,655

10,631

3,416

11,62525,689

1,858

2,290

960

7,224

996

-

-

-

2,992

22,496

2,997¥23,805,444

13,971$178,988,307¥23,234,265

2022

Capital surplus--

3,247,209

MEMBERS' NET EQUITY
Capital

2022

1,099,661

147,495

2022

Time deposits(US$ thous.)

5,966,943

LIABILITIES
Deposits (including NCDs)



2021

146,255

Cash(¥ mil.)(¥ mil.)2021

(US$ thous.)

2022

96,94597,222728,915

1,084,330

1,058,832

8,152,863

-66

-51

-

47,611-

47,487-357,981
-498

5,833

67,33743,863

4,840

4,808

36,394-546

1,191,337¥24,996,782-716

1,227,432¥24,461,697-4,112

8,957,425$187,945,732

CONSOLIDATED STATEMENTS OF INCOME
FOR ALL LABOUR BANKS
Ordinary Income
Interest income

Interest on loans

Interest on deposits with other financial institutions
Interest on call loans

Interest on receivables under securities borrowing transactions

2022(¥ mil.)(US$ thous.)

2022

2021

277,059

267,627

2,083,155

185,951

187,334

1,398,134

244,089

1,835,260

240,271

15,199114,281

15,314

-

-

-

-

-

-

Interest and dividends on securities

34,10331,024

256,421

Other interest

8,834

6,598

66,422

Interest on interest swaps

-

-

-

Fees and commissions

13,501

13,151

101,517

Other ordinary income

2,671

1,436

20,085

Other operating income
Special income
Total income

16,796

113

Financing expenses

Interest on deposits (including NCDs)
Interest on borrowed money

Interest on payables under securities lending transactions

851

222

¥277,1722,084,006¥267,850


Ordinary expenses

126,291

12,767(¥ mil.)(US$ thous.)

232,843

224,1221,750,702

7,964

8,331

59,881

8,267

1
2

8,678

2
2

62,161

14
20

295

338

2,222

Fees and commissions

47,36745,867356,144

General and administrative expenses

160,789

166,007

1,208,945

971

986

Interest on interest swaps
Other interest

Other operating expenses
Other ordinary income

Special expenses

3

13,832
2,586

3

2,067
1,502

23

104,005
19,445
7,305

Total expenses

233,815¥225,109

1,758,008

Net profit before tax

43,35742,740325,998

Corporate income, inhabitant, and business tax

10,005

9,967

75,229Total taxes

11,277

10,96984,792

Net profit¥32,080¥31,770$241,205

Adjustment to income taxes and others

1,271

1,002

9,562

Labour Banks Annual Report 2023

25

STATUS OF INDIVIDUAL LABOUR BANKS(¥ mil., %)(including NCDs)

Deposits

AnnualIncrease

Loans

AnnualIncrease

Ratio of Loansto Deposits

Hokkaido

1,093,673

1.15

811,939

3.49

74.23

Tohoku2,301,467

2.51

1,359,236

4.47

59.05

Chuo

6,909,287

0.40

4,673,310

-0.28

67.63

Niigata-ken

901,333

1.09

377,158

-0.00

41.84

Nagano-ken

761,749

1.68

400,793

2.01

52.61

Shizuoka-ken

1,249,793

2.42

974,429

4.60

77.96

Hokuriku

818,5461.04

477,990

2.77

58.39

Tokai

2,112,117

3.20

1,665,888

4.22

78.87

Kinki

2,440,718

2.00

1,523,130

2.57

62.40

Chugoku

1,304,328

1.88

829,910

1.58

63.62

Shikoku

657,7461.10

416,630

0.24

63.34

Kyushu2,091,986

1.51

1,538,995

-0.28

73.56

Okinawa-ken

317,0280.73

241,109

9.08

76.05

¥22,959,777

1.48¥15,290,523

1.80

66.59

Bank Name

Total
As of March 31, 2023

26

Labour Banks Annual Report 2023

BALANCE SHEET FOR THE ROKINREN BANKASSETSCash

Due from banks
Call loans

Monetary claims purchased
Money in trusts(¥ mil.)(US$ thous.)

2022

2021

2022

2,761,630

3,220,785

20,764,141

-

-

-

-

-

94,000706,766

124,000

4,978-

37,435

4,999

Securities

4,620,379

4,666,000

34,739,698

Others313,571313,543

2,357,681

Loans

Tangible fixed assets

Intangible fixed assets
Prepaid pension costs
Deferred tax assets

Deferred tax assets for land revaluation
Customers' liabilities for guarantees
Allowance for loan losses
Other allowances
Total assets

1,676,976

10,298Demand deposits
Borrowed money
Call Money
Payables under securities lending transactions
Other liabilities
Reserve for bonus payments
Provision for employee retirement benefits
Provision for director retirement benefits
Other reserves
Reserves under the special laws
Deferred tax debt
Deferred tax debt related to revaluation
Guarantees
Total liabilities-

Earned surplus
Of which, unappropriated surplus for the term
Unappropriated share
Unrealized gains and losses on other securities
Deferred hedge gains and losses
Land revaluation excess
Members' net equity
Total liabilities and members' net equity

-

-

-

-

-

-

-

-

-4

-3

-37

¥9,486,491¥9,645,905$71,327,002

-

-

-



(¥ mil.)(US$ thous.)

2022

2021

7,239,548

6,900,187

54,432,693

6,642,824

6,462,303

49,946,050

100,000-

596,723

4,486,642

437,883

520,600

3,914,285

887,900

1,259,654

1,434,152

229

219

34,863751,879

9,471,088
262,134

22,843

1,724

1,891

1,978

14,220

-

-

-

42

323

96

-

-

-

5,073

25,174---

38,149--¥9,161,904-$68,886,499¥9,272,551


2022

Capital surplus

-

-

-

MEMBERS' NET EQUITY
Capital35,034

3,588

2022

Time deposits

77,433

10,775

4,659

LIABILITIES
Deposits (including NCDs)

12,608,848

1,302,215(¥ mil.)2021

(US$ thous.)

2022

120,000

120,000

902,255

187,183

184,373

1,407,397---

25,546-25,31817,403

68,979---324,586¥9,486,491

0373,353¥9,645,905-

192,078-

130,850-

2,440,503$71,327,002

Labour Banks Annual Report 2023

27

STATEMENTS OF INCOME FOR THE ROKINREN BANK
Ordinary Income
Interest income

Interest on loans

Interest on deposits with other financial institutions
Interest on call loans

Interest on receivables under securities borrowing transactions
Interest and dividends on securities
Interest on interest swaps
Other interest

2022(¥ mil.)

89,14561,628283

318

41,371

670,267
311,067

40,090

1,717

1,919

-

-

19

(US$ thous.)

2022

2021

2,134

12,913144

13-

39,33237,785295,730

19

54

144

-

-

-

Fees and commissions

17,621

19,833

132,494

Other ordinary income

2,396

756

18,016

Other operating income
Special income
Total income

27,755-

Financing expenses

Interest on deposits (including NCDs)
Interest on borrowed money

Interest on payables under securities lending transactions
Interest on interest swaps
Other interest

Fees and commissions

Other operating expenses

General and administrative expenses
Other ordinary income

Special expenses$670,267¥61,628
Ordinary expenses--¥89,1452022

208,690947(¥ mil.)2021

(US$ thous.)

2022

78,79750,196592,458

16,083

16,184

120,927

16,2060

16,3230

121,855

0

123

139

927

0

0

0

-

890

38,621

-

879

6,695

6,836

290,389

760

3,365

22,63025,395

5

11

447

-

170,151
43

Total expenses

78,80250,207592,502

Net profit before tax

10,342

11,42077,765

Corporate income, inhabitant, and business tax

1,795

1,733

13,502

Total taxes

1,932

2,083

14,533

Net profit¥8,409¥9,336$63,232

Adjustment to income taxes and others

28

Labour Banks Annual Report 2023

137

349

1,030

OFFICERS OF THE NATIONAL ASSOCIATIONOF LABOUR BANKS
Directors
President

Auditors
Hideji Yoshikawa

Yasunori Nishida

Yoshifumi Takashima

Deputy President

Sakae Oguma

Takuo Matsusako
Executive Director

Yoshitaka NishimuraManaging Director

AdvisorTomoko Yoshino

Kazuhito Ashikawa
Managing Director

Hiroyuki Sugaya
Aya AbeRyohei Demura
Hiroshi Ito
Kenji Sugiura
Toshiaki Saito
Masakazu Koike
Yasutaka Masuda
Masamitsu Tsuji
Tatsuya Sasaki
Koichi Egawa
Manabu Tomori
Muneyuki Sugimoto
Yoshihiko Yamamoto
Masayuki Higashimori(As of June 29, 2023)

Labour Banks Annual Report 2023

29

National Association of Labour Banks
1-13-4 Uchikanda

Chiyoda-ku, Tokyo 101-0047, Japan
Tel: +81-3-3295-6735
Fax: +81-3-3295-6751
http://all.rokin.or.jp/english/index.html