ANNUAL REPORT

2021

Profile
Musashino Bank is the only regional bank whose operationalbase consists of Saitama Prefecture in the Tokyo metropolitan
area. The prefecture lies immediately to the north of Tokyo,
and many of its residents commute to work in the capital.
Currently, 7.34 million people (estimated) live in Saitama,
making it the country’s fifth most populous prefecture after

Tokyo, Kanagawa, Osaka, and Aichi, and the population isstill climbing. Since its establishment in 1952, Musashino
Bank has been one of Saitama Prefecture’s core financial
institutions, and has played a major role in supporting thedevelopment of the regional economy and local industries forapproximately 70 years.

Corporate Philosophy“Working in harmony with the local community it serves”

To contribute to the prosperity of the local community and to secure growth and development in partnership with the region.

“Maintaining a deep respect toward customers”

To engage in bold management that anticipates change while providing the highest-quality services throughout the organization
as a whole.

Bank Data (non-consolidated basis, as of March 31, 2021)

Subsidiaries and Affiliated Companies

Head Office:Home page:
Established:
Networks:

Name
The Bugin General Lease
Co., Ltd.
The Bugin Guarantee
Co., Ltd.
The Musashino Card
Co., Ltd.

(As of June 30, 2020)

Number ofmortgage loan centers:
Employees:
Total assets:
Deposits:
Loans:
Common stock:
Capital adequacy ratio:
Number of correspondent
arrangements:
Issued common stock:

10-8, Sakuragi-cho 1-chome, Omiya-ku, Saitama
http://www.musashinobank.co.jp
March 6, 1952
Number of branches: 99 (Saitama Prefecture: 93 [of which
2 are sub-branches], outside Saitama Prefecture: 6)92,031¥5,300.8 billion¥4,674.0 billion¥3,802.3 billion¥47.1 billion
8.19%
109
33,805 thousand sharesLine of Business
General leases, installment-payment
services, auto leasing services
Loan guarantees for individuals

Credit card business (JCB, VISA),
loans and loan guarantees related tocard services
The Bugin System Service Development, sale and maintenanceCo., Ltd.
of computer systems
The Bugin Economic
Research into the regional economy,
Research Instituteconsultation, information services,Co., Ltd.
and holding of seminars
The Bugin Capital Co.,Management support for ventureLtd.
businesses
The Musashino Harmony Outsourcing of operational businessCo., Ltd.

Contents
1 Financial and Non-Financial Highlights
4 Musashino Bank’s Value Creation Process
6 Message from the President
11 Long-term Vision/Medium-term Management Plan
12 Operational Base of Saitama Prefecture/Alliance Strategy
13 Providing SME Management Assistance
14 Contributing to the Local Economy
15 ESG/SDGs Initiatives

18 Corporate Governance
19 Compliance
20 Risk Management
21 Consolidated Balance Sheets
23 Consolidated Statements of Income and Comprehensive Income
24 Consolidated Statements of Changes in Equity
26 Consolidated Statements of Cash Flows
27 Directory

Financial and Non-Financial Highlights
The Musashino Bank, Ltd. and Consolidated Subsidiaries Years Ended March 31, 2021 and 2020

Thousands of
U.S. Dollars(Notes 1 and 2)
2021

Millions of Yen (Note 1)
2021
2020

At Year-end
Total assets....................................................................................................
Deposits including negotiable certificates of deposit......................................
Loans and bills discounted............................................................................
Trading account securities and securities.......................................................
Total net assets..............................................................................................
Capital adequacy ratio (based on domestic standards) (%)............................

¥5,319,971
4,657,956
3,789,948
683,441
249,179
8.54¥4,674,059
4,343,879
3,571,715
624,188
235,458
8.46$48,053,211
42,073,489
34,233,114
6,173,254
2,250,736

For the Year
Ordinary income...........................................................................................
Ordinary expenses.........................................................................................
Profit before income taxes.............................................................................
Profit attributable to owners of parent...........................................................

¥   71,418
58,611
12,7968,022¥   67,852
59,1068,732
8,066$   645,091
529,410
115,581
72,460Notes: 1. In this annual report, Japanese yen (in millions) and U.S. dollars (in thousands) are indicated with fractions rounded off.
2. U.S. dollar figures have been translated at a rate of ¥110.71 to U.S.$1, the prevailing exchange rate as of March 31, 2021.

Ordinary income

Ordinary expenses

Profit attributable to owners of parent(¥ million)(¥ million)(¥ million)

77,85872,263

71,41866,487
59,10656,53067,85258,611
10,917
8,066

8,022

FY2019FY20205,345

FY2017FY2018FY2019FY2020FY2017FY2018FY2019FY2020FY2017FY2018Forward-Looking Statements: This annual report contains forward-looking statements regarding the Bank’s financial condition and results ofoperations. These forward-looking statements, which include the Bank’s views and assumptions with respect to future events, involve certain
risks and uncertainties. Actual results may differ from forecasts due to changes in economic conditions and other factors.

Number of employees
2,224

2,171

2,103

776

757

766

1,446

1,395

1,346

1,314

FY2017FY2018FY2019FY2020Women

CO2 emissions

(%)

(t)

2,080

778

Men

Ratio of female managers

18.5

19.2

19.4

FY2017FY2018FY201920.8

FY2020

6,887

6,618

6,446
5,779

FY2017FY2018FY2019FY20201Governance
Composition of the Board of Directors
Ratio ofoutside directors

Composition of the Board of Corporate Auditors

37.5% (3 out of 8 members)

Internal directors

Ratio of outside
corporate auditors

60.0% (3 out of 5 members)Standing corporate
auditors

Outside directors(As of July 2021)

Outside corporate
auditors(As of July 2021)

SocialCustomer baseSupport for customers’ core business activities

Number ofcorporate borrowers
20,0492020.3202
companies

2021.3796

2019.32020.32021.3companies

2021.32019.3

1,826

2019.32020.3154

100

2020.3

1,769

companies

1,958

2021.3

Number of employees obtaining qualifications as
1st Grade Certified Skilled Professional of Financial Planningand Small and Medium Enterprise Management Consultant

182

121

2019.3283

Support for
M&As

202

800

1,958

Developing specialized human resources

283
164

Support fordeveloping
sales channels

1,180

Solving issues such as business succession
Support forbusiness
succession

projects

20,871

20,1662019.3

1,180

Start-up
support

20,871 companies

2020.32021.3

Promoting active roles for diverse human resources

employees(As of March 31, 2021)

External assessments of measures to promote active roles
for diverse human resources

Ratio of female managers

20.8%
14.3%

Platinum Kurumin
2016.322021.3(Obtained in 2017)

Recognized under the Act on Advancement of Measures
to Support Raising Next-Generation Children

Eruboshi(Obtained in 2016)

Recognized under the Act on Promotion of
Women's Participation and Advancement in the Workplace

Creating work opportunities for people with disabilities
Ratio of employees with disabilities

Promoting work-life balanceChildcare leave acquisition rate for men

2.35%

84.8 %(March 2021, Group-wide)

Contribution to local communities through our main business(Year ended March 31, 2021)

Financial literacy

SDGs private-placement bonds(Donation-type private-placement bonds)

Issue amount
Total of¥14,710 million

Number of participants in financial literacy classes
for elementary school students

Donation amount
Approx.

Total of¥29million

871

participants(September 2018 to March 2021)(2010–2021)

Environment
Support for promotion of local culture and art

CO2 emissions(Tons)

Violin concerts at elementary schools
within Saitama Prefecture48

Total of

6,446

concerts (2009–2021)

5,779

6,618

Concerts for customers
Total of11

concerts (2007–2021)

2019.3

Greening activities

2020.32021.3

Environmentally friendly accounts

Subsidies provided
by the Musashino Green Fund public trust
Total of¥74.10314

Environmentally friendly accounts that do not issue passbooks,
leading to reduced paper use

WebNotemillionTotal ofenvironmental organizations
provided with assistance(July 1992 to April 2021)

31,220accounts(As of March 31, 2021)

3

Musashino Bank’s Value Creation Process
As the environment both in Japan and overseas changes significantly, theBank will strive to capture the full potential of the Tokyo metropolitan area,
centered on Saitama Prefecture, which is the Bank’s operational base. The
Bank will establish sustainable business models in the business domains of“growth” and “creation,” with the goal of continuing to grow together withcustomers and communities.

Long term vision
Capital deployed
INPUT

Business structure
Growth domain

Awareness of external
environment surrounding
regional financial institutions

Financial capital• Growing solution revenue• Loan-to-deposit ratio at the top
level of the regional bank sector• Sound loan assets and capital
adequacy• Measures to handle the prolonging ofliving with coronavirus• Accelerating initiatives for regional
revitalization• Business model transformation
through DX• Opportunities to enter different
industries through deregulation• Support for decarbonization as aregional financial institution

Creation domain

Human capital• Employees’ devotion and senseof mission toward communities• Progress on urban redevelopment andthe establishment of industries• Population aging faster than any otherprefecture in Japan

Proactive efforts towards
regional revitalization andstimulation of the local
economy• Human resources with strong
specialized expertise• Promotion of a diverse workforce,
including womenSocial capital
Saitama Prefecture

Advanced solutions functions,in addition to financial
intermediary functions, lie atthe core of business

Unique strengths• Operating in the Tokyo
metropolitan area, centered on
Saitama Prefecture• Branch networks with close ties
to communities• A continuously growing
customer base developed since
the Bank’s founding

Operating in the Tokyo
metropolitan area, a growing
regionIntellectual capital• Quality and quantity of
information through networks
closely tied to communities• Ability to deliver diverse andsophisticated solutions throughbusiness evaluations

Implement strategies that
capture the full potential ofthe market• Use of digital technologies thatfacilitate the creation of new
businesses and services

The Bank remains close to customers and solves their issues,4

Business model

OUTPUT

The number one bank in the region that creates value in Saitama

Medium-term Management
Plan “MVP 70”

Digital transformation strategy(Build infrastructure and systems)

Creation strategy
Human resource strategy
Alliance strategy
Securities strategy
Group strategy
Corporate governance

OUTCOME

Completion of the ideal
business model•N umber one solutions in the region• Integration of people and digitaltechnology

Growth strategy

Value provided

The Bank rigorously
pursues a businessmodel that reinvests
in community
development to earn
the overwhelming
satisfaction ofcustomers andearnings from corebusiness (interest
income and fees andcommissions) byresolving issues

Compliance
ESG/SDGs

Shareholders andother investors• Increase shareholder value

Local communities• Contribute to innovation forcommunities as a whole• Further promote thedevelopment of industry

Customers• Increase the corporate valueof customers• Stable asset formation andsuccession

Employees
Musashino Bank Sustainable Development Goals Declaration
Vision for the Bank (Key Areas)
Corporate Governance as the Sourceof Sustainable Growth

Sustainable
Regional Economy

Responding to Climate Change,
Maintaining and Increasing
Biodiversity

A Society in Which People Can Live
Their Own Way for as Long as They Wish

• Diverse and highly fulfilling
work styles• Promote diversity• Create local employment

Global environment• Promoting decarbonization
through investment andfinancing• Store locations withconsideration for theenvironment and biodiversity

thereby achieving growth together with its customers.
5

Message from the President

Continuing to Grow Together
with Communities
Business Environment

Kazumasa Nagahori
President

6

Looking back at fiscal 2020, in April, the first stateof emergency was announced and various restrictions on economic and social activity, including
self-restraint from going outdoors and temporary
business closure requests, lasted for two months.
These restrictions had a widespread impact on thedaily lives of residents in Saitama Prefecture and on
business activities.
After the first state of emergency was lifted,
despite a surge of infections over the summer,
hopeful signs began to emerge by the fall of2020 in economic and social activities, including
increased demand in the manufacturing industry
brought on by China’s economic recovery duringthat year, and GDP shifted to growth in thesecond and third quarters.
However, on entering 2021, a second stateof emergency was declared in January, and thesituation once again became unpredictable due tothe spread of the mutated virus, the GDP slippingback into negative growth in the fourth quarterin a downturn that surpassed the 2008 global
financial crisis.
There remains an unshakeable sense of uncertainty about the way forward.
Under this environment, we at Musashino Bank
exhausted every effort to perform our core businessas a financial intermediary function to support
the community. While continuing to interview
all approximately 20,000 corporate clients about
the impact of COVID-19, we worked on smoothand prompt funding support, and made newloans of ¥330.0 billion for approximately 12,000
companies up to March 2021.

Currently, to support the sustainable growthof each individual corporate client during thetime of living with coronavirus, the Consulting
Office, a specialized organization newly establishedin October 2020, is at the core as Head Officeand branches work together to provide rigorous
support for the main business undergoing businessmodel transformation and business reconstruction.
Under these conditions, regional banks likeMusashino Bank are once again being put to thetest regarding their role and reason for existing
while looking toward the maintenance and revitalization of regional industries and employment.
Meanwhile, monetary easing has persisted overthe long term, while cashless transactions anddigitalization are proceeding at an even faster pacethan before, and there is a demand to establish
business models that are not part of the traditionalframework.
In Saitama Prefecture, the Bank’s local market,
the population is aging faster than any otherprefecture in Japan. Expectations are growing ona daily basis toward the Bank’s efforts to advance
services to support seamless inheritance andbusiness succession, and its measures to promote
regional revitalization and creation in anticipation

Deposits including negotiablecertificates of deposit(non-consolidated)(¥ billion)

4,209.5

FY2017of a society with a declining population.
In addition to these issues, the financial sector
has an even greater role to fulfill in tackling sharedglobal issues such as climate change, decarbonization, human rights, poverty, and economic
disparity. Proactive and positive efforts to address
the Sustainable Development Goals (SDGs) havebecome an urgent priority.

Assets in custody(non-consolidated)Loans(non-consolidated)(¥ billion)(¥ billion)

4,288.4

FY2018822.8

4,360.8

FY2019828.1
3,470.8

776.7

FY20203,802.3

896.4

4,674.0

FY2017FY2018FY2019FY2020FY20173,535.5

FY20183,584.5

FY2019FY20207

Building Sustainable
Business Models

services. In parallel, we aim to enhance our earnings capabilities.
Furthermore, as a local bank, we cannot realize
the Bank’s growth without ensuring the region’ssustained development. Amid an aging society withfewer children and a declining population, banks
have an extremely significant role to play in revitalizing the economy and society, meaning regional
creation. The Bank will collaborate with various
stakeholders including not only government as amatter of course, but also educational institutions
and the non-profit sector. We will serve as acoordinator and work actively on priorities such as
identifying and creating new local resources, promoting industry, and expanding the non-resident
and resident populations.
In addition, guided by the Musashino Bank
Sustainable Development Goals Declaration, we
are focusing on refining corporate governance,
contributing to a sustainable regional economy andsociety, and proactive measures to address climatechange and the environment. We will continue tobuild unique business models through unwavering
efforts to create new value, while remaining close
to customers and communities.

In these and other ways, conditions in Japan andoverseas have changed dramatically. In April 2013,
the Bank formulated its 10-year long-term vision.
We have continued to work single-mindedly torealize this vision.
Aiming to become “the region’s number one
bank that creates new value in Saitama (The Valuemaking Bank),” we remain determined to establish
a business model where “the Bank remains close tocustomers and solves their issues, thereby achieving
growth together with its customers.”
To support the increasingly sophisticated anddiversified needs of our customers, we seek todevelop a shared understanding of issues in thecourse of our daily communication with customers, and apply the Group’s collective capabilities
to solving those issues, while leveraging thestrengths of the networks we have built over theyears and our strong personal relationships witheach customer. Moreover, we will deliver customer
satisfaction that surpasses customers’ expectations
by focusing on the creation of new businesses andProfit attributable to owners of parent/
Net income

Dividend payout ratio and annual dividend
FY2017 FY2018 FY2019 FY2020(¥ billion)

10.9

5-year average of consolidated ROE

10.0
8.0
5.3

7.0

8.0

7.3

4.7

Dividend
payout ratio (%)

26.5

57.0

37.7

36.6

Annualdividend (Yen)

80

80

80

80

5.2%

4.6%
3.9%

3.5%

Shareholders return ratio
FY2017 FY2018 FY2019 FY2020

FY2017FY2018

Consolidated
Non-consolidated

8

FY2019FY2020Shareholders
return ratio (%)

26.5

57.0

37.7

36.6

FY2017FY2018

Consolidated
Non-consolidated

FY2019FY2020Medium-term Management Plan
“MVP 70”
The Medium-term Management Plan “MVP70” that started in April 2019 as the final step inrealizing the long-term vision has operated for two
years and is now facing a turning point.
We seek to accelerate and further consolidate
the business model reforms we have been working
to achieve over the past few years, underpinnedby our aim of serving as “a bank always close tocustomers and communities” and “a bank thatcherishes employees and helps them grow.”

Branch Networks
Looking at specific initiatives, I would first like todiscuss our branch networks. We aim to provide
services optimally tailored to our customers,
pursuing approaches aligned with characteristics
of localities such as by organizing neighboring
branches into business units and adopting a branchwithin a branch structure, while maintaining the
network we have built to date.
In addition, we are continuing to strengthen ourefforts in areas with growth potential, particularly in
Ikebukuro, Shibuya and elsewhere in central Tokyo,
and in locations bordering Saitama Prefecture.

Rebuilding Our Sales System
We have been making progress in establishing a sales
system that provides optimal solutions. This has
involved clearly defining roles of personnel assigned
to our respective corporate and individual customers.
Meanwhile, we will focus on improving thespecialized expertise of the Bank’s employees, byencouraging them to obtain practical businessknow-how at our Head Office and branches basedon the Training Solutions Program, the Bank’s own
human resources program.

Initiatives for Corporate andIndividual Customers
The Bank has been responding to customer needs
accurately by providing fine-tuned solutions with adiverse lineup of products and services.
For corporate clients, we launched a new

recruitment service in October 2020, matching
employers to executive candidates and highly
skilled professionals, and this has been particularly
well-received, in addition to providing services
that include consulting related to government
subsidies for business restructuring and supporting
digitalization efforts.
For individual customers, we support the needfor seamless inheritance and business succession
with a full lineup of our own financial productsthat include testamentary trusts and monetarytrusts and continue to focus on services that
include our financial instruments intermediary
operations in addressing their asset formation andasset management needs.

Digital Transformation (DX)We have been actively enlisting a range of everevolving technologies with the aim of facilitating
further growth in the rapidly progressing anddeveloping field of digital transformation (DX).
We have also been successively implementing
functional enhancements since January 2021, suchas adopting a new branch office system that incorporates tablet devices and making it possible forcustomers to perform various banking transactions
by using our Musashino Bank App smartphone
application rather than physically visiting ourbranch locations. In addition, we will continue toengage with a sense of speed in efforts to improvecustomer satisfaction while increasing productivity
and efficiency, such as by shifting to digital contracts
and other paperless procedures, and developing
remote access environments in operating activities.

Creation Strategy and Regional Revitalization
We continue to focus on developing businessmodels of local production for local consumption
and creating virtuous cycles for regional economies
in partnership with government administrations,private-sector companies, NPOs, such as the
Minuma Tanbo project utilizing fallow rice paddy
fields in Saitama City, which was initiated in2014, and a project to energize the local economy
through tourism in an industry-academic partnership with Rikkyo University.
9

Human Resource Development
The Bank believes that human resources are thekey to differentiating itself from other financial
institutions. We are working to create an environment where all employees, including younger staff
and women, can improve their skills and abilities
and obtain a high level of job satisfaction. We
are also fully committed to promoting diversity.
Proactive steps are being taken to enhance thework-life balance of employees, including encouraging staff to take all of their childcare leave.

Alliance Strategy
The Chiba-Musashino Alliance is a comprehensive
alliance between The Chiba Bank, Ltd. andMusashino Bank, both of which are based in theTokyo metropolitan area. The TSUBASA Allianceis a wide-area alliance of 10 regional banks representing various areas across Japan. We are striving
to further accelerate efforts under our growthstrategy by fully harnessing the strengths of each ofthese alliances.

Refining Corporate GovernanceWe believe corporate governance is the starting
point for all of our efforts to increase corporate
value. Based on this belief, we have actively
brought onboard outside directors and outside
corporate auditors equipped with a broad range ofexperience and knowledge, with the aim of ensuring even more highly transparent management.
Moreover, we are taking active steps to raise thesophistication of risk management, bolster compliance and address new issues such as anti-money
laundering and cybersecurity. Another priority is toenhance communication with stakeholders.

to stakeholders through transparent processes,
we established the Sustainability Promotion
Committee chaired by the President and endorsed
the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD) in
September 2021 to accelerate efforts throughout
the Bank.

Continuing to Grow Together
with Communities
The grand opening of our new Head Officebuilding is scheduled for December 2021, subsequent to completion in September. We apologize
for any inconvenience that may have been caused
over the four years since 2017. That said we are
eager to step forward together with our stakeholders in looking toward the future of Saitama
as we furthermore serve those throughout the“Musashino” business territory, just as we havebeen doing over the last half century through theformer Head Office.
Going forward, under its unwavering Corporate
Philosophy of “working in harmony with the local
community it serves” and “maintaining a deep
respect toward customers,” which it has promoted
since its inception in 1952, the Bank will makeit clear to everyone that while taking on a boldstance, we have evolved to contribute further to
Saitama’s growth and furthermore serve a sociallysignificant role as a regional bank.
Finally, we will strive to achieve sustainablegrowth by meeting the expectations of each andevery one of our stakeholders, including our customers, shareholders, local community residents,
employees and their family members.

Toward Realization of a Sustainable Society
We are committed to addressing shared global
challenges such as climate change and decarbonization, while also contributing to local economies
and society through community-based finance.
Meanwhile, in seeking to remain accountable

10

Kazumasa Nagahori
PresidentLong-term Vision/Medium-term Management Plan
The Bank started the medium-term management plan “MVP 70” in April 2019 as the final phase of its long-term vision to be“the number one bank in the region that creates value in Saitama,” focusing on objectives that include providing optimal solutions closely aligned to the needs of corporate and individual customers and developing highly specialized human resources.

Long-term Vision: “MVP (Musashino Value-making Plan)”

The number one bank in the region that creates value in Saitama
The Value-making Bank

By creating value in Saitama, lead the economic development of Saitama,
and also grow ourselves by responding to the expectations of our customers
Medium-term management plans

Phase 3 (4 years)

Phase 1 (3 years)

Phase 2 (3 years)“MVP 1/3 (One-Third)”“MVP 2/3 (Two-Thirds)”(April 2013–March 2016)(April 2016–March 2019)

Enhance readiness to become
the number one bank in the region

Establish our reputation as thenumber one bank in the region

Medium-term management plan
“MVP 70”
Maintain our overwhelming
position as the number one bankin the region

Main Initiatives under the Medium-term Management Plan “MVP 70”
Key Strategies
Growth strategy(corporate clients)

Action Plan●E xhibit substantial

expertise in respective
customer segments●B uild a customer-

oriented network

Growth strategy(individual customers)
Digital transformation(DX)

Creation strategy●C arry out branch

improvements withemphasis on communication with customers

Evaluation

Results (FY2020)

Support involving diverse financing arrangements and businessmatching, seamless business succession and overseas expansion◎● No. of corporate borrowers: 20,871 companies● Support for developing sales channels: 1,958 companies● Support for business succession: 202 companies● Support for M&As: 283 companies

Inheritance and wealth succession,
asset management and asset
formation, life planning◎● No. of applications filed for testamentary trusts, etc.: 836● No. of customers with assets in custody: 107,962◎● Completely revamped smartphone application● Completed branch-wide adoption of branch office system●D evelop more sophisticated digital services●R eform overall banking operations to increase productivity●A ctively engage in regional revitalization●D evelop more sophisticated solutions in growth domains○

Human resource
strategy●D evelop professional talent●C reate a rewarding workplace organization○

Management andadministration
systems●A chieve highly transparent corporate governance● I mplement initiatives involving ESG goals and SDGs○

incorporating tablet devices● Achieved sixth-order industrialization through projects under-

taken since 2014

● Facilitated entry into agricultural sector by companies fromdifferent industries, etc.

● No. of hands-on professionals developed through the Training

Solutions Program: 60● No. of employees obtaining qualifications as 1st Grade Certified

Skilled Professional of Financial Planning and Small and Medium
Enterprise Management Consultant: 154● Ratio of outside directors: 37.5%● Ratio of outside corporate auditors: 60.0%● Cumulative total of SDGs private-placement bonds: ¥14.7 billion

New Business Challenges• Provide stronger core business support for local companies amid prolonged COVID-19 pandemic• Build new business models that account for deregulation, etc.
• Accelerate the pace of digital transformation (DX) even further• Take greater initiative in energizing the local economy and regional revitalization• Take action as a regional financial institution in addressing climate change and decarbonization
Quantitative Results and Targets
Net earnings from core business
Earnings
Core OHR
ROE
Equity ratio

FY2019¥11.5 billion¥7.0 billion
74.38%
3.09%
8.13%

FY2020¥14.8 billion¥7.3 billion
69.19%
3.14%
8.19%

FY2022¥15.0 billion¥10.0 billion
70% or less
4% or more
8% level
11

Operational Base of Saitama Prefecture/Alliance Strategy
Musashino Bank’s Operational Base

Alliance Strategy

The Bank’s operational base is Saitama Prefecture, which hasa high concentration of logistics and production bases due to
its well-developed transportation infrastructure, including the
Ken-O Expressway and a nexus for all six of the Shinkansenbullet train lines in East Japan. Total production in Saitama
Prefecture is around ¥23 trillion, making it the fifth largest prefectural economy in Japan. A large number of companies haverelocated there from outside the prefecture, with the net increase
from corporate relocations over the 10-year period from 2011 to2020 standing at 582 companies, the highest in the country for
10 consecutive years. In this environment, the Bank recognizes
that its mission is to promote locally rooted finance, and we
strive to provide our corporate clients with a smooth supply offunds and other support for their core operations.

Following the Chiba-Musashino Alliance, the Bank has now
entered into the TSUBASA Alliance. While fully leveraging
the benefits of wide-area partnerships, we will further accelerate strategic alliances, contributing to the sustainable growthof regional society through the provision of high-value-added
financial services to customers while firmly retaining
autonomy in management.

NaganoPrefecture

Yamanashi
Prefecture

SaitamaPrefecture(fiscal 2021–fiscal 2025)
Mission:

IbarakiPrefecture

Provide value-added and highly convenient services to customers and communities by integrating ideas from both banks

Tokyo
Kanagawa
Prefecture

The Bank has formulated a new five-year plan that began in
April 2021 as the second phase on the fifth anniversary of the
Chiba-Musashino Alliance, a comprehensive business allianceconcluded with Chiba Bank in March 2016. We will refine
the partnership into an alliance as a model for deeper regionalbanks collaboration.

New Five-Year Plan
— Model for Deeper Regional Banks Collaboration —Tochigi
Prefecture

Gunma
Prefecture

Chiba-Musashino Alliance

Vision:Realize the evolution of regional banks as a frontrunner inregional banks collaboration

Chiba
Prefecture

Alliance effect:
Total of ¥15 billion between both banks (fiscal 2021–fiscal 2025)

TSUBASA Alliance
The TSUBASA Alliance, Japan’s largest
alliance of regional banks with participation from 10 banks
representing different regions from Hokkaido to Okinawa,
involves working together on new issues such as increasing
the sophistication of financial services and cashless banking
while leveraging the benefits of wide-area partnerships. The
joint venture TSUBASA Alliance Co., Ltd. was establishedin July 2020 and the AML (Anti-Money Laundering) Centerin October 2020 to jointly conduct operations related to theprevention of money laundering and financing of terrorism,
such as ongoing customer due diligence, while bringing
together the knowledge and expertise of each bank.

An expressway and railway networkthat extends all over Japan

Expressway
Railway (Shinkansen)• Musashino Bank
• Chugoku Bank
• North Pacific Bank
• Gunma Bank
NaritaInternational Airport
Tokyo
International Airport(Haneda)12• Chiba Bank • Daishi Hokuetsu Bank• Iyo Bank
• Toho Bank
• Shiga Bank • Bank of The Ryukyus

Providing SME Management Assistance
Initiatives Related to SME Management
Assistance
The Bank assumes locally rooted finance as its mission, andengages in the smooth supply of funds and management
assistance matched to the growth stages of its customers. In
the Consulting Office, which was newly established within
the Head Office in October 2020, we provide comprehensive
support to solve various management issues through dialogue
with managers.

Human Resources Placement
We obtained a license as a fee-charging employment business and launched a human resource placement service in
October 2020. We gather feedback on specific information
about job postings including conditions such as salary andjob location, and place human resources who suit the needsof individual companies.
Fiscal 2020 achievements (from October 2020 to March 2021)
Number of requests for human resource placement: 384●

Helping companies solve their issues
(Approx. 4 times the plan)

Number of contracts signed: 20 (Approx. 2 times the plan)● Examples
of contracts●

Funding
Management strategies● Consultingwith managers● Varioustypes of consultation●●

Results

Support Team for Start-Ups and New Entries
Specialized teams at the Head Office and branch offices work
together to support start-ups and new business entries. The
Bank offers its unique financial products and services to help
streamline the operations of start-ups and provide information. We also host seminars for women entrepreneurs andprovide places for female managers to interact.

Support for DX (Digital Transformation)
We conduct business matching with companies involved
in digitalization to support corporate clients’ productivity
improvements and cost reductions through digitalization.
We have also held the Digital Engineering Academy
in collaboration with the Research Institute of Industrial
Technology at Toyo University. This supports the development of human resources skilled in digital technology at
corporate clients.

Support for Overseas Expansion
We set up a Representative Office Registered in Singapore
to support corporate clients’ overseas expansion and business development. We address local demands in a flexible
manner through collaboration and cooperation with theoverseas branches of Japanese banks and with overseas
banks. In addition, we dispatched employees to JETRO
Saitama, which was opened by JETRO in November 2019,
and actively support the expansion of sales channels forcompanies in Saitama Prefecture while collaborating with
the JETRO Saitama center.

Human resources placed

Candidates for managing administraTransportation industry
tive divisions
Building maintenance industry Construction worksite management
Wholesale industry
Candidates for managing sales offices
Manufacturing and wholesale Candidates for sales leadership
industry

Support for Sustainable Management
In March 2019, we formulated and released the Musashino
Bank Sustainable Development Goals Declaration, and areworking on developing sustainable regions through our main
operations as well as familiarizing officers and employees withthe objectives. Based on the Bank’s experience of conducting
pioneering initiatives for the SDGs through relationships
with a large number of stakeholders, it believes there are highsocial expectations for it to be a leader in SDG promotion
with corporate clients.
Initiatives to Support Sustainable Management

Began offering the Musashino SDGs private placement bond,Mirai no Chikara● First
regional bank to form a Social Finance-type Syndicate Loan
● Beganoffering the Musashino Sustainability Link Loan
● Initiated
SDGs consulting business●Supporting M&As, Inheritance, andBusiness Succession
We have arranged consulting services to offer comprehensive
support to address such concerns as succession issues, businesssuccession and diversification. There is increasing need for
consultations about M&A and we offer support that includes
advice from the standpoint of practical operations andassistance for negotiations, business matching with corporateclients, and collaboration with external agencies and specialists, and help with corporate clients’ business succession as
well as maintaining and creating regional job opportunities.
Number of M&A consultations
FY2017132

FY2018157

FY2019307

FY2020415
13Contributing to the Local Economy
Deposits from the Region

Loans to the Region

As of March 31, 2021, deposits from the region increased¥455.5 billion year on year to ¥4,617.9 billion. The ratio of
deposits from the region continued to be high, at 98.80% of
the total balance of deposits.
The Bank’s share of deposits within the prefecture as ofMarch 31, 2021 is 13.19%.

Loans to the region as of March 31, 2021 rose ¥222.6 billion
to ¥3,285.1 billion, thereby maintaining a high loan-to-region
ratio of 86.40%. The Bank’s share of loans in the prefectureis 19.74%.

Assets in Custody from the Region
As of March 31, 2021, assets in custody from the region
increased ¥68.3 billion year on year to ¥896.4 billion. The
breakdown comprises investment trusts of ¥143.2 billion,
life insurance of ¥707.3 billion, and government bonds andother assets of ¥45.8 billion.

Towards a Sounder Financial Position
The Bank is strengthening its capital adequacy and reducing
non-performing loans. The Bank has maintained a consolidated and non-consolidated capital adequacy ratio (Basel III
domestic standard) of 8.54% and 8.19%, respectively, so wehave continued to maintain a very sound financial position.
The Bank’s non-performing loan ratio, based on standards
established by the Financial Reconstruction Act, is 1.93%.

* Investment trust figures are market value; life insurance figures are total sales.

Deposits from region/Ratio of deposits from region

Loans to region/Ratio of loans to region

Non-consolidated(¥ billion)

Non-consolidated(¥ billion)

98.90%

98.36%

98.75%

98.80%
4,617.9

3,991.8

4,063.1

4,162.4

FY2017FY2018FY201986.58%

86.40%

85.15%

85.44%

3,005.1

3,010.5

3,062.5

FY2017FY2018FY2019FY2020

12.1

14.6

31.6

36.0

3,285.1

FY2020

Deposits from region
Ratio of deposits from region

Loans to region
Ratio of loans to region

Assets in custody from region

Non-performing loans

Non-consolidated(¥ billion)

Non-consolidated(¥ billion)

896.4
821.9

827.2

775.8
17.1

FY2017FY2018FY2019FY2020

11.4
31.4

32.7

1.71%

1.98%

1.98%

1.93%

17.0

20.9

27.9

23.4

FY2017FY2018FY2019FY2020Bankrupt and quasi-bankrupt assets (unrecoverable claims)
Claims on potentially bankrupt borrowers
Substandard loans
Ratio of loans subject to mandatory disclosure ofclaims under the Financial Reconstruction Law* “Region” refers to Saitama Prefecture and the areas bordering the prefecture which are a part of the economic and local-living sphere(the Kumegawa Branch, Itabashi Branch, Ikebukuro Branch, and Goka Branch sales areas).
14

ESG/SDGs Initiatives
The Bank proactively embraces Environmental, Social, and Governance (ESG) perspectives in regard to its management, andfocuses on initiatives that take sustainability into consideration. With a view to embedding these initiatives more deeply andmaking an even greater contribution to the region, we have formulated the Musashino Bank Sustainable Development Goals
Declaration. Guided by this declaration, we will continue to make efforts towards realizing sustainable local communities while
responding to our stakeholders.

Musashino Bank Sustainable Development Goals Declaration
The Musashino Bank Group declares that all of its officers and employees will strive to contribute to achieving the objectives of the Sustainable Development Goals (SDGs).
• To contribute to the sustainable development of the regional economy, the Bank always exercises its
financial intermediary functions and commitment to customer-oriented business operations.
•To contribute to the creation of a sustainable community including industry and employment, urban development and livability, the Bank engages in partnerships with various bodies, including municipal governments, companies and NPOs.
• The Bank regards issues such as climate change and human rights as having a direct effect on it, and seeks global sustainability.

Vision for the Bank (Key Areas)
Corporate Governance as the Source ofSustainable Growth

A Society in Which People Can Live Their
Own Way for as Long as They Wish

The Bank positions corporate governance as the source ofsustainable growth, and aims to conduct steadfast bank management grounded on its management philosophy, which has
remained unchanged since its founding.

The Bank will actively work to create a society in which all
people can live in their own way, healthily and happily.

Sustainable Regional Economy
The Bank will promote innovation in local industry and local
production for local consumption, as well as contributing to
the development of comfortable, strong towns and working
to realize sustainable economic growth.

Responding to Climate Change, Maintaining
and Improving Biodiversity
The Bank will respond to global climate change and makeefforts to maintain and improve the rich local biodiversity.

Initiatives to Promote Sustainable Management
To achieve sustainable management, the Bank is working to improve the effectiveness of its initiatives and to enhancecommunication with stakeholders by systematically engaging in various measures that include global issues such as climatechange and human rights.
• Established the Sustainability Promotion Committee chaired by the president• Issued a statement endorsing the proposals by the Task Force on Climate-related
Financial Disclosures (TCFD)

15

Initiatives for Regional Revitalization●

As a regional financial institution, the Bank recognizes initiatives for regional revitalization to be one of the most importanttasks, and not only supports the initiatives of local public
entities but also collaborates with government administrations,private-sector companies, NPOs, educational institutions andother bodies to solve a variety of regional issues and to create
regional value as one leader in regional creation.

We help to solve corporate clients’ managerial issues such as
research development and management reorganization throughan alliance with eight universities located within the prefecture.

Collaborating Universities andtheir Main Specialist Field
Toyo University (Kawagoe City)
Rikkyo University (Niiza City)
Bunri University of Hospitality (Sayama City)
Saitama Prefectural University (Koshigaya City)
Saitama Institute of Technology (Fukaya City)

Alliance with Ogano Town
We dispatched one employee to Ogano Town in October
2020 in response to the signing of a comprehensive alliance agreement. We have cooperated on creating policies
in order to revitalize the town’s economy and slow the
population decline and on initiatives to promote the useof public facilities.

Nippon Institute of Technology (Miyashiro Town)
Saitama University (Saitama City)
Heisei International University (Kazo City) ooperation with Rikkyo
C
University College of Tourism

Since October 2021, we have supported a demonstration
project for community bicycles in both cities which havesigned a comprehensive alliance agreement. This was proposed and coordinated by the Bank as a demonstration
project for community bicycles over a wide area that will
help energize regional tourism and improve convenience
for residents.

Since 2007, we have been engaged in
the “Bratte-Saitama Project” for regional
revitalization through tourism in Saitama
Prefecture in an alliance with Rikkyo
University. The “Bratte Series,” a regionalguidebook created under this project, hasbeen published in 10 volumes.

Initiatives for Growing Fields
In 2005, we were the first ones in Saitama Prefecture toestablish a specialized team to solve issues in the medical
and welfare fields. In addition to offering financing products
specifically geared toward medical institutions, we hold various seminars for people from medical institutions and social
welfare corporations based on various topics such as key
points for systematic reform and business succession.
We have also established a specialized team dedicated toagricultural fields, and support new entries by companies
from different industries, business matching for expanding
sales channels, and new product development using locally
produced goods.

Activities in Agricultural Fields
We utilize a network and information that only a regionalbank could attain, and carry out a wide range of initiatives
such as projects that will lead to matching with different
industries and regional revitalization.

Supporting participationin smart rice farming using drones

16

Manufacturing and industry
fieldsTourism industry
Service industry
Nursing care and welfare fields
Electronics field
Advanced engineering suchas AI, IoT, etc.
A wide range from thehumanities to the sciences
Health and sports fields

Alliances with Kounosu City and Kitamoto City●●S upport through an
industry-Academia-Government Alliance

Supporting tomato cultivation by
local businesses using abandoned farmland

The “Bratte Series”

Environmental Initiatives
The Bank has declared that it will respond to global climatechange and make efforts to maintain and improve the rich biodiversity of the region based on the awareness that a sustainable
environment is a requirement for the sustainable developmentof the regional economy, society, and the Bank itself.

Initiatives to Preserve the Environment
through Our Main Business
As the Bank promotes environmental finance more than everbefore, we are actively carrying out investment and finance inprojects that contribute to sustainability. Looking ahead, we areworking to assess the environmental risks in our loan portfolio
and encourage companies to realize decarbonization in order toachieve carbon neutrality in 2050. Additionally, we are working
on promoting the use of fuel cell electric vehicles, the purchase of
items with low environmental loads, and the elimination of paper.

Handling Biodiversity
The Bank has focused on maintaining and improving biodiversity through initiatives aimed at promoting further greenery in
the region, including the utilization of a public trust scheme.
The Musashino Green Fund public trust was establishedin July 1992 with the goal of contributing to the creation of
beautiful and comfortable living environments by subsidizing
activity funds for businesses that aid the preservation andcreation of natural environments within Saitama Prefecture.
Over 29 years, we have contributed approximately ¥74.1
million to 314 organizations.

Diversity Initiatives

Other Initiatives

In 2016, the Bank formulated a long-term vision to promote
the active participation of human resources, setting numericaltargets including a ratio of female managers and a ratio of
annual paid leave used with the aim of creating a workplace
where diverse human resources could flourish. In addition,
we are engaged in various initiatives to improve customer
satisfaction by utilizing the viewpoints and mindsets ofdiverse human resources to improve customer services.

Grand Opening of New Head Office

Ratio of female managers

25.0%
19.2% 19.4%

20.8%

FY2018 FY2019 FY2020 FY2022

Ratio of men taking
childcare leave

12.1years
11.5 years

12.5 years

FY2018 FY2019 FY2020 FY2022

Ratio of annual paid
leave used

100%

100%
71.9%

Average length of service
for women
13 years

84.8%

FY2018 FY2019 FY2020 FY2022

65%
29.4% 31.3%

35.1%

FY2018 FY2019 FY2020 FY2022

Responses for LGBT Individuals
In July 2021, we began offering special LGBT provisionhome loans that can be used by same-sex partners.
In order to increase options for LGBT individuals to
obtain housing, loans can now be offered by calculating theborrowings and earnings of both partners based on set conditions in home loans.

Special Subsidiary
The Musashino Harmony Co., Ltd.
The Musashino Harmony Co., Ltd. was established with thegoal of increasing opportunities for people with disabilities
to play a role. The company currently has six employees andits operations include printing business cards and making
novelty items.
We strive to create a workplace that is motivating for all
employees by enabling them to use their special talents andproviding solid support.

Initiatives for Health Management
We support health management through routine check-ups
and health guidance conducted by a resident nurse andintroducing a working-hour interval system so that executives
and employees can work healthily and comfortably in bothmind and body.
In April 2021, the Bank was recognized as a 2021
Certified Health & Productivity Management Outstanding
Organization (in the large enterprise category) in theCertified Health & Productivity Management Outstanding
Organizations Recognition Program which is operated by
the Ministry of Economy, Trade and Industry (METI) andNippon Kenko Kaigi.

Our new Head Office, which will have its grand opening
on December 13, 2021, will serve as a base of regional communication and co-creation. It will also realize new workstylereforms to help improve productivity and job satisfaction,
further consideration toward the environment and biodiversity,and enhanced resiliencein anticipation of largescale disasters. In thisway, it aims to become
a symbol of sustainablegrowth for both
Saitama Prefecture andthe Musashino Bank.

Regional Communication and Co-Creation

In the regional revitalization space located on the 2nd floor, we will holdseminars and symposiums centered on various topics, while conveying
the appeal of the local Saitama region on multi-displays. We will also
newly establish areas in which to experience the digital transformationof smartphone apps and support local sports teams. In addition to this,we will open a coworking space and a cafe in an aim to create a place ofregional communication and co-creation.

Contributing to Sustainability

The Head Office is the first head office of a financial institution to receive
certification from the Japan Habitat Evaluation and Certification Program(JHEP) for planting vegetation in consideration of local ecosystems.
The office also features equipment to properly control lights, airconditioning and sewage, and is equipped with solar panels on its roof,
granting it functions equivalent to an A rank in CASBEE (Comprehensive
Assessment System for Built Environment Efficiency).

Initiatives to Improve Financial Literacy
The Bank proactively carries out activities to improvefinancial literacy. In addition to a tour of branch locations
using virtual reality (VR) (the Musashino virtual bank tour),the homepage features content called the Musashino money
school which makes it possible to have fun learning aboutmoney and banks, both of which can be used for financial
education at home.

Promoting Culture, Art, and Sports
We work on promoting culture and art such as music
and theater for regional revitalization and the healthy
development of children. For sports promotion, we support
professional soccer team Omiya Ardija Ventus, professional
baseball team Saitama Seibu Lions, professional basketballteam Koshigaya Alphas, as well as professional table tennis
team T.T Saitama, and provide support for sports teams andlocal athletes with roots in the region.

Responses to COVID-19
In order to cooperate with steady vaccination against COVID-19 in
the region, Musashino Bank conducted workplace vaccinations for all
Musashino Bank Group employees (including temporary employees), as
well as their families, who opted to be vaccinated.
Additionally, to alleviate the shortage of protective gear on medical
frontlines, we contributed 200 pieces of protective gear to Saitama
Prefecture and donated ¥3 million to Saitama Prefecture’s COVID-19
countermeasure promotion fund.

17

Corporate Governance
Enhance Management Oversight Systems

Management Advisory Committee

Musashino Bank recognizes that upgrading and expanding
its corporate governance capabilities are key priorities ofmanagement. In addition to adhering strictly to a policyof compliance with statutory and regulatory requirements
as well as in-house rules and regulations, every effort ismade to ensure that the Board of Directors and the Boardof Corporate Auditors stringently monitor directors in theexecution of their duties. Three outside directors and threeoutside corporate auditors with abundant knowledge andexperience have been selected to monitor and audit directors
in the execution of their duties. They also take part inmeetings of the Board of Directors where they are able toproactively voice their opinions and offer advice on management from a broad, independent and neutral perspective.
This ensures that the management monitoring function isboth objective and impartial.

The Management Advisory Committee was established as anadvisory function to the Board of Directors. The committee
is made up of seven people: three outside directors, including the committee chair, two external experts (the Bank’s
independent outside corporate auditors), and two internal
directors. It deliberates on matters related to the selection,
dismissal, and remuneration of directors. The Board of
Directors reflects the deliberations of the committee in its
decision-making.

Corporate Governance Structure (As of July 1, 2021)

General Meeting of Shareholders
Assignment

Management
Advisory
Committee

Assignment

Inquiry
Audit

Board of Directors
Directors

Board of Corporate Auditors
Corporate auditors

ReportSupervision

Discussion

ReportDiscussion

Assignment

ReportBusiness execution functions
Executive Committee

Indication/
Verification
Compliance Committee

Audit

Accounting auditors

Executive officers

Head office/Branches

18

Audit

AdviceAuditing Division

Law officeLicensed tax accountants

Compliance
Compliance Framework
The social and public mission of the banking business makes
high demands for operations based on fair and transparent
corporate activities in compliance with laws, regulations,and social norms and in accordance with the principles ofself-discipline and self-responsibility. Accordingly, the Bank
considers the thorough compliance of its directors andemployees in business operations to be a top priority, and to
this end management is actively involved in the fulfillmentof the Bank’s social and public mission as the Bank works
to strengthen its compliance framework through steps suchas system improvements and the establishment of teaching
methods.
In the future, the Bank will further strengthen its corporate activities based on a strong sense of ethics and integrity
and its management approach in accordance with principles
of self-responsibility as it further strengthens the complianceframework so that the Bank’s daily business activities andactions ensure compliance with laws, regulations, and social
norms.

Basic Compliance Policy
Musashino Bank’s basic compliance policy entails that officers
and employees go about their daily duties in accordance with
the Bank’s two fundamental management guidelines, namely
its Corporate Philosophy and Code of Behavior.
Under its unwavering Corporate Philosophy, the Bank
strives to work in harmony with the local community it
serves while maintaining a deep respect toward customers.
As a local bank in Saitama Prefecture, we continue tocontribute to the local community and society. Furthermore,
the Code of Behavior is founded on “the public mission of
the Bank” and stipulates “provision of high-quality financial
services,” “compliance with laws, regulations, rules, etc.,”“open business management through communication withsociety,” “respecting the personalities of employees,” “tacklingenvironmental problems,” “tackling social contribution
activities,” and “resolute responses to anti-social forces,” anddirectors and employees go about their daily duties guided bythese basic policies.

Compliance Management Structure
The Legal Affairs Office of the Risk Management Division
serves as the compliance management department for the
Bank. This office undertakes the uniform management of alllegal issues relating to compliance while providing instructions based on investigation and research. At the same time,
the office coordinates with officers responsible for legal compliance appointed to all branches while working to strengthen
the compliance structure. Regular meetings are held with theofficers responsible for legal compliance appointed to eachbranch in order to improve the level of compliance throughthe sharing of information and training, and meetings arealso held each month with the officers responsible for legal
compliance in the head office and each department. Thesemeetings serve as a forum to deliberate on compliance issues
and to share information.
In addition to the aforementioned, periodic compliancechecks are undertaken at each branch by the officers responsible for legal compliance. In this manner, the Bank has put
in place a mechanism that is capable of grasping the status ofdaily compliance management.
Furthermore, Musashino Bank has established theCompliance Committee with the president of the Bank serving as the chairperson, which serves as the organization thatchecks the status of compliance on a Bank-wide basis whileconsidering any and all other important matters throughregular meetings. In addition, the committee evaluates andchecks on the progress and implementation status of the“Compliance Program” approved by the Board of Directors.

Compliance ManualTo ensure the compliance of its officers and employees, theBank has distributed a compliance manual that has been
approved by the Board of Directors to all of its officers andemployees and is working to ensure that all staff members are
fully aware of its contents.
The compliance manual contains sections on the Bank’s
Corporate Philosophy, Code of Behavior, and basic policies.
It contains a section on compliance standards that stipulates
the matters officers and employees should comply with, asection on the compliance framework that provides an explanation on various structures at the Bank including educationand verification structures, a section on laws and regulations
that require directors’ and employees’ compliance, and whichcontains an explanation of the laws and regulations that Bank
employees are required to be knowledgeable of, and a pick-up
compliance section that provides a more detailed explanationof the matters that should be prioritized in the conduct ofdaily work. The compliance manual serves as a standard formaking decisions and taking actions in everyday businessactivities.

Money Laundering—Countermeasures against
Anti-Social Forces
The Bank has positioned prevention of money launderingand financing of terrorism as important issues in its management strategy. We strive to implement countermeasuresagainst money laundering and to eliminate anti-social forces,
while working to build control structures to help withprevention through basic policies.
In addition, we provide ongoing training for all employees
to help ensure that everyone is aware of relevant laws andregulations, and takes appropriate operational measures.

19

Risk Management
Risk Management Policy
As the risks associated with banking operations become
increasingly varied and complex, the Bank has formulated
a set of internal management policies that take into consideration the Bank’s strategic targets, in order to ensure thatthe manner in which it manages its business is both soundand pertinent. Guided by these policies, the Bank works
diligently to manage risk.
In specific terms, the Bank classifies all pertinent risks
according to their nature and attributes. Classifications
comprise (1) comprehensive risks; (2) credit risks; (3) market
risks; (4) liquidity risks; and (5) operational risks (including
administrative and system risks). These individual risks arethen managed according to their particular characteristics andrequirements.

Management Structure by Type of Risk
(1) Comprehensive Risk Management
In order to appropriately manage the wide variety of risks
on a comprehensive basis, the Bank has established theComprehensive Risk Management Department and is working to develop and improve its management structure. The
Comprehensive Risk Management Department puts in placerules and criteria for determining the scope of comprehensive
risk management, management methods, evaluation of new
products and operations as well as the level of acceptable risk
after taking into consideration management strategies, management capacity as well as business scale and characteristics.
Based on these rules and criteria the ALM (Asset Liability
Management) and other appropriate committees monitor andcontrol risks. The results of these activities are reported to theBoard of Directors and other relevant bodies on a regular basis.

(2) Credit Risk Management
Musashino Bank has historically taken steps to maintain the
independence of the Credit Division and to build a stringent
screening and management structure in order to maintainand strengthen the soundness of its assets. At the same time,
the Bank has adopted a ranking system and endeavored to
upgrade and expand its credit risk management capabilities asa part of its efforts to establish objective decisions and lending policies on an individual transaction counterparty basis.

(3) Market Risk Management
Musashino Bank has established the Market Risk
Management Department in order to appropriately manage
market risks. Relevant steps are taken to ensure the independence of the department from the Market Management
Department and Business Promotion Division, and to establish and develop a structure that is capable of harnessing thechecks-and-balances function. At the same time, the ALM
and Credit Portfolio Management Committees deliberate as
and when required.

(4) Liquidity Risk Management
Musashino Bank has established the Liquidity Risk
Management and Cash Management Departments in order
to appropriately manage liquidity risk. While ensuring
the independence of the Liquidity Risk Management
20

Department from the Cash Management Department,
Market Management Department and Business Promotion
Division, every effort is made to establish and develop
a structure that is capable of harnessing the checks-andbalances function. At the same time, the ALM Committee
deliberates as and when required.

(5) Operational Risk Management
Musashino Bank confronts broad and varied operationalrisks. In addition to classifying risks as (i) administrative risk,(ii) systems risk, and (iii) other operational risks (a. legalrisk, b. human risk, c. tangible asset risk, and d. reputationrisk), putting in place rules on an individual risk basis andpromoting the management of each risk by the appropriate
management department, the Bank has established the
Operational Risk Management Department to undertake themanagement of operational risks on a comprehensive basis.
The Bank also pushes forward measures aimed at establishingand developing a management structure that is capable ofharnessing the checks-and-balances function with respect
to each business division. Moreover, the Operational Risk
Management Committee deliberates on issues as and whenrequired.

Crisis Management/BCP Framework
The Bank has established a Business Continuity Plan (BCP)as part of its contingency planning to ensure operations
will continue in case of events such as a major earthquake,system disruption, or outbreak of pandemic influenza. The
Bank has compiled manuals that establish concrete codes of
behavior and countermeasures. In parallel, the Bank holds
systematic drills to improve the responsiveness and awarenessof all executives and employees. Additionally, the Bank
makes improvements to address issues it identifies and related
matters, as part of efforts to further increase the effectivenessof the BCP.
In response to the current coronavirus pandemic, the Bank
set up an Emergency Response Headquarters immediately,in order to maintain financial intermediary functions as
an essential service that is vital to people’s daily lives. We
have swiftly implemented response measures in line withconstantly changing conditions.

A Cyber Security Management Framework
We established the Cyber Security Management
Subcommittee as a CSIRT within the Bank, with the aimof ensuring a highly effective cyber security framework that
includes trying to prevent any impact from the occurrence ofcyber attacks, and minimizing the damage and achieving an
early-stage recovery if there is any. We are developing diverse
activities for normal times and for emergencies (if someincident occurs).
*CSIRT: Computer Security Incident Response TeamA general term for teams responsible for cyber security management within an organization. At the Bank, the Cyber Security
Management Subcommittee and its secretariat are CSIRTs.

Consolidated Balance Sheets
The Musashino Bank, Ltd. and Consolidated Subsidiaries As of March 31, 2021 and 2020

Millions of Yen
2021
2020

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Lease receivables and investments in leases���������������������������������������������������
Other assets��������������������������������������������������������������������������������������������������
Tangible fixed assets�������������������������������������������������������������������������������������
Buildings, net������������������������������������������������������������������������������������������
Land��������������������������������������������������������������������������������������������������������
Leased assets, net�������������������������������������������������������������������������������������
Construction in progress��������������������������������������������������������������������������
Other tangible fixed assets�����������������������������������������������������������������������
Intangible fixed assets�����������������������������������������������������������������������������������
Software���������������������������������������������������������������������������������������������������
Leased assets��������������������������������������������������������������������������������������������
Other intangible fixed assets��������������������������������������������������������������������
Retirement benefit asset�������������������������������������������������������������������������������
Deferred tax assets����������������������������������������������������������������������������������������
Customers’ liabilities for acceptances and guarantees������������������������������������
Allowance for loan losses������������������������������������������������������������������������������
Total assets������������������������������������������������������������������������������������

¥  739,970
613
62
1,494
683,379
3,789,948
3,157
21,24533,796
48,0698,535
25,363
13
11,995
2,161
4,533
4,253
78
201
8,986
1,126
5,315
(21,730)¥5,319,971¥  374,688
510
48
1,494
624,140
3,571,715
5,191
21,10335,04342,224
8,843
25,363
20
6,391
1,605
4,375
4,068
104
201
5,341
3,218
4,795
(19,831)¥4,674,059

Thousands of
U.S. Dollars*
2021$ 6,683,859
5,537
560
13,495
6,172,694
34,233,114
28,516
191,898
305,266
434,188
77,093229,094
117
108,346
19,51940,94538,416705
1,816
81,167
10,171
48,008(196,279)$48,053,211

21

Millions of Yen
2021
2020

Liabilities
Deposits�������������������������������������������������������������������������������������������������������
Negotiable certificates of deposit������������������������������������������������������������������
Call money and bills sold�����������������������������������������������������������������������������Cash collateral received for securities lent�����������������������������������������������������
Borrowed money������������������������������������������������������������������������������������������
Foreign exchanges����������������������������������������������������������������������������������������
Borrowed money from trust account������������������������������������������������������������
Other liabilities��������������������������������������������������������������������������������������������
Provision for bonuses�����������������������������������������������������������������������������������
Provision for bonuses for directors (and other officers)���������������������������������
Retirement benefit liability���������������������������������������������������������������������������
Provision for retirement benefits for directors (and other officers)����������������
Provision for loss on interest repayment�������������������������������������������������������
Provision for reimbursement of deposits�������������������������������������������������������
Provision for point card certificates��������������������������������������������������������������
Provision for contingent loss������������������������������������������������������������������������
Provision for share-based compensation�������������������������������������������������������
Allowance for demolition of non-current assets��������������������������������������������
Deferred tax liabilities����������������������������������������������������������������������������������
Deferred tax liabilities for land revaluation���������������������������������������������������
Acceptances and guarantees��������������������������������������������������������������������������
Total liabilities�������������������������������������������������������������������������������

¥4,586,566
71,39035,427
20,158311,228223
3,283
25,504
1,152
12
3,255
32
42
320
96
318
78
—
2,159
4,227
5,315
5,070,791¥4,210,049
133,830
30,422
16,137
11,890358
1,043
19,954
1,133
11
3,452
39
52
366
88
256
60
329
99
4,227
4,795
4,438,601$41,428,651
644,838
319,998
182,079
2,811,200
2,014
29,654230,368
10,406108
29,401
289
379
2,890
867
2,872
705
—
19,501
38,181
48,00845,802,466

Net assets
Share capital�������������������������������������������������������������������������������������������������
Capital surplus���������������������������������������������������������������������������������������������
Retained earnings�����������������������������������������������������������������������������������������
Treasury shares���������������������������������������������������������������������������������������������
Total shareholders’ equity���������������������������������������������������������������
Valuation difference on available-for-sale securities��������������������������������������
Deferred gains or losses on hedges����������������������������������������������������������������
Revaluation reserve for land�������������������������������������������������������������������������
Remeasurements of defined benefit plans�����������������������������������������������������
Total accumulated other comprehensive income����������������������������
Share acquisition rights��������������������������������������������������������������������������������
Non-controlling interests�����������������������������������������������������������������������������
Total net assets������������������������������������������������������������������������������
Total liabilities and net assets��������������������������������������������������������

45,74338,352
142,286(911)
225,471
15,099
(311)
8,286
559
23,63447
26
249,179¥5,319,971

45,74338,352
136,947(909)
220,133
10,543(1,454)
8,286(2,122)
15,25347
23
235,458¥4,674,059

413,179
346,419
1,285,214(8,229)2,036,591
136,383(2,809)74,844
5,049
213,477425
235
2,250,736$48,053,211* U.S. dollar figures have been translated at the rate ¥110.71 to U.S.$1, the prevailing market rate as of March 31, 2021.

22

Thousands of
U.S. Dollars*2021Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
The Musashino Bank, Ltd. and Consolidated Subsidiaries For the Years Ended March 31, 2021 and 2020

Consolidated Statements of Income

Millions of Yen
2021
2020

Ordinary income����������������������������������������������������������������������������������������
Interest income��������������������������������������������������������������������������������������������
Interest on loans and discounts����������������������������������������������������������������
Interest and dividends on securities����������������������������������������������������������
Interest on call loans and bills bought������������������������������������������������������
Interest on deposits with banks����������������������������������������������������������������
Other interest income������������������������������������������������������������������������������
Trust fees�����������������������������������������������������������������������������������������������������
Fees and commissions����������������������������������������������������������������������������������
Other ordinary income���������������������������������������������������������������������������������
Other income�����������������������������������������������������������������������������������������������
Recoveries of written off receivables���������������������������������������������������������
Other�������������������������������������������������������������������������������������������������������
Ordinary expenses��������������������������������������������������������������������������������������
Interest expenses�������������������������������������������������������������������������������������������
Interest on deposits����������������������������������������������������������������������������������
Interest on negotiable certificates of deposit���������������������������������������������
Interest on call money and bills sold��������������������������������������������������������
Interest expenses on cash collateral received for securities lent������������������
Interest on borrowings and rediscounts����������������������������������������������������
Other interest expenses����������������������������������������������������������������������������
Fees and commissions payments�������������������������������������������������������������������
Other ordinary expenses�������������������������������������������������������������������������������
General and administrative expenses������������������������������������������������������������
Other expenses���������������������������������������������������������������������������������������������
Provision of allowance for loan losses�������������������������������������������������������
Other�������������������������������������������������������������������������������������������������������
Ordinary profit�������������������������������������������������������������������������������������������
Extraordinary income���������������������������������������������������������������������������������
Gain on disposal of non-current assets�����������������������������������������������������
Extraordinary losses�����������������������������������������������������������������������������������
Loss on disposal of non-current assets������������������������������������������������������
Profit before income taxes��������������������������������������������������������������������������
Income taxes—current���������������������������������������������������������������������������������
Income taxes—deferred��������������������������������������������������������������������������������
Total income taxes��������������������������������������������������������������������������
Profit�����������������������������������������������������������������������������������������������������������
Profit attributable to non-controlling interests�����������������������������������������
Profit attributable to owners of parent������������������������������������������������������

¥71,418
39,38032,478
6,615
(6)
0
293
55
14,8082,167
15,005579
14,426
58,611
1,274
538
12
188
100
39
395
4,016
1,741
35,473
16,105
4,283
11,821
12,80700
11
11
12,796
4,148
622
4,771
8,025
3
¥ 8,022¥67,852
38,87232,560
6,115
(25)
0
222
15
14,2091,836
12,918373
12,544
59,106
2,479
847
26
746
443
38
376
3,838
1,484
35,40015,902
4,164
11,738
8,745
1
1
15
15
8,732
1,054
(415)
638
8,094
27
¥ 8,066

Thousands of
U.S. Dollars*
2021$645,091
355,704
293,361
59,751
(54)
0
2,647
497
133,755
19,574
135,534
5,230
130,304
529,410
11,508
4,860
108
1,698
903
352
3,568
36,275
15,726
320,414
145,470
38,687
106,774
115,6810
0
99
99
115,581
37,467
5,618
43,09572,48727$ 72,460* U.S. dollar figures have been translated at the rate ¥110.71 to U.S.$1, the prevailing market rate as of March 31, 2021.

Consolidated Statements of Comprehensive Income

Profit�����������������������������������������������������������������������������������������������������������
Other comprehensive income�����������������������������������������������������������������������
Valuation difference on available-for-sale securities����������������������������������
Deferred gains or losses on hedges�����������������������������������������������������������
Remeasurements of defined benefit plans, net of tax��������������������������������
Comprehensive income������������������������������������������������������������������������������
Comprehensive income attributable to
Owners of parent�������������������������������������������������������������������������������������
Non-controlling interests�������������������������������������������������������������������������

Millions of Yen
2021
2020

Thousands of
U.S. Dollars*
2021¥ 8,025
8,381
4,555
1,142
2,682
¥16,406¥ 8,094(8,883)(7,847)(0)(1,035)¥  (789)$ 72,487
75,702
41,144
10,31524,225$148,189¥16,4033¥  (817)
27$148,162
27* U.S. dollar figures have been translated at the rate ¥110.71 to U.S.$1, the prevailing market rate as of March 31, 2021.

23

Consolidated Statements of Changes in Equity
The Musashino Bank, Ltd. and Consolidated Subsidiaries For the Years Ended March 31, 2021 and 2020
Millions of Yen
Shareholders’ equity

Balance as of April 1, 2019................................................
Changes during period:
Dividends of surplus����������������������������������������������������
Profit attributable to owners of parent�������������������������
Purchase of treasury shares�������������������������������������������
Disposal of treasury shares��������������������������������������������
Purchase of share of consolidated subsidiaries
treasury stock�������������������������������������������������������������
Net changes in items other than shareholders’ equity���Total changes during period�����������������������������������������
Balance as of March 31, 2020...........................................
Changes during period:
Dividends of surplus����������������������������������������������������
Profit attributable to owners of parent�������������������������
Purchase of treasury shares�������������������������������������������
Disposal of treasury shares��������������������������������������������
Purchase of share of consolidated subsidiaries
treasury stock�������������������������������������������������������������
Net changes in items other than shareholders’ equity���Total changes during period�����������������������������������������
Balance as of March 31, 2021...........................................

Share
capitalCapitalsurplusRetainedearnings

TreasurysharesTotal shareholders’equity¥45,743¥38,291¥131,563¥(906)¥214,692(2,682)(2,682)

8,066
1

8,066
(42)

(42)

39

40

59

59

—

60

5,383

(3)

5,441

45,74338,352

136,947(909)

220,133(2,682)(2,682)

8,022
—

8,022
(2)

(2)

—

—

—

—

—

—

5,339

(2)

5,337

¥45,743¥38,352¥142,286¥(911)¥225,471

Millions of Yen
Accumulated other comprehensive income

24

Valuationdifference on
available-for-salesecurities

Deferred
gains orlosses onhedgesBalance as of April 1, 2019................................................ ¥18,391
Changes during period:
Dividends of surplus����������������������������������������������������
Profit attributable to owners of parent�������������������������
Purchase of treasury shares�������������������������������������������
Disposal of treasury shares��������������������������������������������
Purchase of share of consolidated subsidiaries
treasury stock�������������������������������������������������������������
Net changes in items other than shareholders’ equity���(7,847)
Total changes during period�����������������������������������������
(7,847)
Balance as of March 31, 2020........................................... 10,543
Changes of items during period:
Dividends of surplus����������������������������������������������������
Profit attributable to owners of parent�������������������������
Purchase of treasury shares�������������������������������������������
Disposal of treasury shares��������������������������������������������
Purchase of shares of consolidated subsidiaries
treasury stock�������������������������������������������������������������
Net changes of items other than shareholders’ equity���4,555
Total changes during period�����������������������������������������
4,555
Balance as of March 31, 2021........................................... ¥15,099¥(1,453)

Total accuRevaluation Remeasurements mulated otherSharereserve forof defined comprehensive acquisition
land
benefit plansincomerights¥8,286¥(1,087)¥24,137¥ 66

Noncontrollinginterests

Total net
assets¥ 318¥239,214(2,682)
8,066
(42)
40
59

(0)

—

(1,035)(8,884)

(18)

(294)

(9,197)(0)—(1,035)(8,884)

(18)

(294)

(3,755)(1,454)

8,286(2,122)

15,25347

23

235,458(2,682)
8,022
(2)
—
—

1,142

—

2,682

8,381

—

3

8,384

1,142

—

2,682

8,381

—

3

13,721¥  (311)¥8,286¥   559¥23,634

¥ 47

¥ 26

¥249,179

Thousands of U.S. Dollars*
Shareholders’ equity

Balance as of March 31, 2020...........................................
Changes during period:
Dividends of surplus����������������������������������������������������
Profit attributable to owners of parent�������������������������
Purchase of treasury shares�������������������������������������������
Disposal of treasury shares��������������������������������������������
Purchase of share of consolidated subsidiaries
treasury stock�������������������������������������������������������������
Net changes in items other than shareholders’ equity���Total changes during period�����������������������������������������
Balance as of March 31, 2021...........................................

Share
capitalCapitalsurplusRetainedearnings

TreasurysharesTotal shareholders’equity$413,179$346,419$1,236,989$(8,211)$1,988,375(24,225)(24,225)

72,46072,460
(18)

(18)

—

—

—
—

—

—

—

48,225(18)

48,207$413,179$346,419$1,285,214$(8,229)$2,036,591

Thousands of U.S. Dollars*
Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities

Deferred
gains orlosses onhedgesTotal accuRevaluation Remeasurements mulated otherSharereserve forof defined comprehensive acquisition
land
benefit plansincomerightsBalance as of March 31, 2020........................................... $ 95,231
Changes during period:
Dividends of surplus����������������������������������������������������
Profit attributable to owners of parent�������������������������
Purchase of treasury shares�������������������������������������������
Disposal of treasury shares��������������������������������������������
Purchase of share of consolidated subsidiaries
treasury stock�������������������������������������������������������������
Net changes in items other than shareholders’ equity���41,144
Total changes during period�����������������������������������������
41,144
Balance as of March 31, 2021........................................... $136,383$(13,133)$74,844$(19,167)$137,774$425

Noncontrollinginterests

Total net
assets$208$2,126,800(24,225)
72,460(18)——

10,315—24,22575,702—

27

75,72910,315—24,22575,702—

27

123,936$ (2,809)$74,844$ 5,049$213,477

$425

$235

$2,250,736* U.S. dollar figures have been translated at the rate ¥110.71 to U.S.$1, the prevailing market rate as of March 31, 2021.

25

Consolidated Statements of Cash Flows
The Musashino Bank, Ltd. and Consolidated Subsidiaries For the Years Ended March 31, 2021 and 2020

Millions of Yen
2021
2020

Cash flows from operating activities
Profit before income taxes����������������������������������������������������������������������������
Depreciation������������������������������������������������������������������������������������������������
Share of loss (profit) of entities accounted for using equity method��������������
Increase (decrease) in allowance for loan losses���������������������������������������������
Increase (decrease) in provision for bonuses��������������������������������������������������
Increase (decrease) in provision for bonuses for directors (and other officers)���
Decrease (increase) in retirement benefit asset����������������������������������������������
Increase (decrease) in retirement benefit liability������������������������������������������
Increase (decrease) in provision for retirement benefits for directors (and other officers)���
Increase (decrease) in provision for loss on interest repayment����������������������
Increase (decrease) in provision for reimbursement of deposits���������������������
Increase (decrease) in provision for point card certificates�����������������������������
Increase (decrease) in provision for contingent loss���������������������������������������
Increase (decrease) in provision for share-based compensation����������������������
Increase (decrease) in allowance for demolition of non-current assets�����������
Interest income��������������������������������������������������������������������������������������������
Interest expenses�������������������������������������������������������������������������������������������
Loss (gain) related to securities���������������������������������������������������������������������
Loss (gain) on money held in trust���������������������������������������������������������������
Foreign exchange losses (gains)���������������������������������������������������������������������
Loss (gain) on disposal of non-current assets������������������������������������������������
Net decrease (increase) in trading securities��������������������������������������������������
Net decrease (increase) in loans and bills discounted������������������������������������
Net increase (decrease) in deposits����������������������������������������������������������������
Net increase (decrease) in negotiable certificates of deposit���������������������������
Net increase (decrease) in borrowed money (excluding subordinated borrowings)���
Net decrease (increase) in due from banks (excluding due from Bank of Japan)���
Net decrease (increase) in call loans��������������������������������������������������������������
Net increase (decrease) in call money�����������������������������������������������������������
Net increase (decrease) in cash collateral received for securities lent��������������
Net decrease (increase) in foreign exchanges—assets�������������������������������������
Net increase (decrease) in foreign exchanges—liabilities�������������������������������
Net increase (decrease) in borrowed money from trust account��������������������
Interest received�������������������������������������������������������������������������������������������
Interest paid�������������������������������������������������������������������������������������������������
Other, net����������������������������������������������������������������������������������������������������
Subtotal������������������������������������������������������������������������������������������
Income taxes refund�������������������������������������������������������������������������������������
Income taxes paid�����������������������������������������������������������������������������������������
Net cash provided by (used in) operating activities������������������������Cash flows from investing activities
Purchase of securities������������������������������������������������������������������������������������
Proceeds from sale of securities���������������������������������������������������������������������
Proceeds from redemption of securities��������������������������������������������������������
Increase in money held in trust��������������������������������������������������������������������
Purchase of tangible fixed assets��������������������������������������������������������������������
Proceeds from sale of property, plant and equipment�����������������������������������
Purchase of intangible assets�������������������������������������������������������������������������
Payments for asset retirement obligations�����������������������������������������������������
Net cash provided by (used in) investing activities������������������������Cash flows from financing activities
Dividends paid���������������������������������������������������������������������������������������������
Dividends paid to non-controlling interests��������������������������������������������������
Purchase of treasury shares���������������������������������������������������������������������������
Purchase of treasury shares of subsidiaries�����������������������������������������������������
Proceeds from sale of treasury shares������������������������������������������������������������
Net cash provided by (used in) financing activities������������������������
Net increase (decrease) in cash and cash equivalents��������������������������������Cash and cash equivalents at beginning of period������������������������������������Cash and cash equivalents at end of period�����������������������������������������������

¥ 12,796
2,711
(2)
1,898
18
0
(450)
(191)
(7)
(9)
(46)
7
61
17
(329)
(39,380)
1,274(1,694)2(2,029)10(13)(218,233)
376,517(62,440)
299,337
0
(102)
5,005
4,020
2,033
(134)
2,239
39,896(1,406)
3,557
424,934
2,160(1,392)425,702¥   8,732
2,870(7)(3,191)
(14)
1
(476)
(96)
9
8
(126)
3
58
(6)
(282)
(38,872)
2,479
(8)
3
1,123
13
13
(49,584)
84,619(23,600)
957
9,915
12,123(100)(5,013)(2,630)158
1,043
40,021(2,596)(326)
37,219—(6,509)30,710$   115,581
24,487(18)
17,144163
0(4,065)(1,725)
(63)
(81)
(415)
63
551
154
(2,972)(355,704)
11,508(15,301)
18(18,327)
90(117)(1,971,213)
3,400,930(563,996)
2,703,794
0(921)
45,20836,311
18,363(1,210)20,224360,365(12,700)
32,1293,838,262
19,510(12,573)
3,845,199(309,024)
81,587
178,329(5)(7,110)7(1,518)(1)(57,734)(237,880)
32,422
223,679(9)(7,006)
13(1,661)
(114)
9,441

(2,791,293)
736,943
1,610,776(45)(64,222)63(13,711)(9)(521,489)(2,682)—(2)——(2,685)365,282
373,991¥ 739,274(2,682)
(0)
(42)
(262)
40
(2,947)
37,204
336,786¥ 373,991(24,225)—(18)——(24,253)
3,299,449
3,378,114$ 6,677,572* U.S. dollar figures have been translated at the rate ¥110.71 to U.S.$1, the prevailing market rate as of March 31, 2021.

26

Thousands of
U.S. Dollars*
2021

Directory
Organization Chart (as of July 1, 2021)
General Meeting of Shareholders

General Planning and Management Division
Strategic Planning Office
Alliance Management Office

Corporate Auditors
Board of Corporate Auditors
OutsideCorporate Auditors

Digital Transformation OfficeFinancial Affairs Office
Tokyo Office
Risk Management Division
Legal Affairs Office
Customer Service Promotion Office

Board of Directors

Personnel Division
Secretariat
Career Development Office* and Representative Directors

Human Resources Activities Promotion Office

Executive Committee
Senior Managing Directors*
Chairman

Health Support Office

President*

Business Management Division
Business Planning Office

Managing Directors
Outside Directors

Assets in Custody Promotion Office
FinTech Promotion Office
Local Community Support Division
Community Value Creation Office
Solutions Marketing Division
Consulting Office
Credit DivisionCorporate Management Support OfficeInternational and Treasury Division
Global Business Advisory Office
Representative Office Registered in Singapore
General Affairs Division
Administration Division
Systems Management Office
Operation Services Division
Auditing Division27

Board of Directors, Corporate Auditors and Executive Officers (as of July 1, 2021)
ChairmanManaging Directors

Corporate Auditors

Managing Executive Officers

Executive Officers

Kikuo Kato

Susumu Kurosawa
Ken Otomo

Yoshio Kenmochi(standing)
Yuichi Tanaka (standing)Atsumu Kuroishi (outside)
Tomio Kezuka (outside)
Kenji Tamura (outside)

Masaharu Saito
Tsutomu Kainuma
Tadashi Uehara
Kazuhiro Wakabayashi

Takao Miyazaki
Manabu Okabe
Yutaka Amada
Masahiro Asano
Yukio Kurosu
Hideaki Takeuchi
Toshitaka Matsuura
Noboru Iijima

President

Directors

Kazumasa Nagahori

Ryuichi Mitsuoka (outside)
Yukimitsu Sanada (outside)
Ayako Kobayashi (outside)

Senior Managing Director

Toshiyuki Shirai

Investor Information (as of March 31, 2021)
Number of Shares Held by Type of Shareholders

 uthorized: 80,000 thousand shares
A
Issued:33,805 thousand shares
Number of Shareholders 12,203
Common Stock

Financial institutions
44.79%

Other corporations
22.45%

Major Shareholders
Name
Custody Bank of Japan, Ltd. (trust account)

2,661

Foreign companies
and others
14.34%

7.93

The Master Trust Bank of Japan, Ltd. (trust account)

2,089

6.22

Custody Bank of Japan, Ltd. (trust account 4)

1,247

3.72

The Chiba Bank, Ltd.

925

2.75

Meiji Yasuda Life Insurance Company

735

2.19

Musashino Bank Industries Employees’ Stockholding Association

730

2.17

MUFG Bank, Ltd.

727

2.16

SUMITOMO LIFE INSURANCE COMPANY

702

2.09

Maeda Glass Co., Ltd.

579

1.72

Nippon Life Insurance Company

50

1.51

* Shareholding percentages are rounded down to two decimal places.

28

Number of
Shares held assharesa percentage of(Thousands total outstandingof shares)
shares (%)

Individuals and others
17.26%

Financial instruments
business operators
1.16%

Notes: 1. Some treasury stock is contained in “Individuals and others.”
2. “Other corporations” includes a unit of 14 shares under the nameof Japan Securities Depository Center, Inc.

10-8, Sakuragi-cho 1-chome,
Omiya-ku, Saitama 330-0854
Phone: +81-48-641-6111

Brand Message

The Musashino Bank’s brand message is “More for You.”
The Bank personnel always ask themselves“What can I do for everyone?” and“What kind of service do I want to give everyone?”“Everyone” includes the Bank’s customers,
the members of local communities, our shareholders,and friends of the Bank, together with their families.
Accordingly, the Musashino Bank aspires to provide
everyone with better services and to contribute to
our local communities.