Meeting Local Financing Needs

Deposits and Loans

During the term under review, we opened two new branches in Wakayama Prefecture and two in Osaka Prefecture, bringing the total to 70 branches and 36 branches respectively in the two prefectures, which constitute the Bank’s main operating base.
    In Wakayama Prefecture, the Bank commands the largest share for both deposits and loans, and as the region’s leading bank, it recognizes that its role in the development of the community is more important than ever. In Osaka Prefecture, both deposits and loans are increasing steadily, and we expect our role in the prefecture to continue growing in the future.

Lending to Small and Medium-sized Businesses and Private Customers

We have expanded our sales staff and our marketing bases to increase customer contact. Through these efforts, we have been able to propose responses to many of our customers’ management issues and help them to meet their funding needs, thereby extending the upward trend in loans to SMEs.
    The outstanding term-end balance of loans extended to small and medium-sized businesses and private customers in the region amounted to ¥1,830.8 billion, 77% of the total loan balance of ¥2,385.6 billion. This was an increase of ¥111.5 billion over the previous term.

Initiatives for the Invigoration of the Regional Economy

Management Advice and Consulting
Principally utilizing our marketing branches and our Pyxis Marketing Office*, we devise solutions to our customers’ management issues and help support their growth by fully leveraging the Group’s overall consulting function and its information provision capabilities. In addition, we are working to enhance customer convenience while conducting financing in a way that fosters ties with the local community.
    Meanwhile, we are augmenting our proprietary knowledge by cultivating a network of outside specialists (lawyers, tax accountants and M&A experts) and public institutions (including national, prefectural and governmentaffiliated institutions). In this way, we are building a structure for implementing measures to support the growth of local companies and facilitate problemsolving that responds specifically to the needs of SMEs.

*Pyxis Marketing Office
The Pyxis Marketing Office was set up by the Bank in collaboration with Group member Kiyo Lease & Capital Co., Ltd., outside experts and external organizations. The Office responds to the diverse needs of the Bank’s local corporate customers. We discuss with customers management issues such as fund procurement, management strategy and business succession. We also provide necessary information and propose solutions.

Support for Management Improvement
As our customers face a protracted severe operating environment, we are working to further improve communications with them. We are also helping them to draft management revival plans to improve their financial positions and conduct business operations in an appropriate and effective manner.
    Through collaboration with external and government affiliated organizations such as the SME Revitalization Support Council and Resolution and Collection Corporation, the Bank helps its corporate customers to select the funding methods most appropriate to their business circumstances. These methods include the use of the Kuroshio Corporate Support Fund, in which the Bank holds an equity stake. In some cases, the Bank works to effect a radical reorganization of customer enterprises to achieve full-fledged revitalization.
    Thanks to these initiatives, the Bank was able to upgrade the borrower categories of 70 companies during fiscal 2008.

Smooth Funding
We have four Business Support Centers at our head office and in Tanabe, Kishiwada, and Sakai. These are newtype dedicated loan-provision offices whose staff deal by telephone and fax with loanrelated queries and requests from SMEs and local business owners. The Bank is working to precisely identify each customer’s specific needs and provide a tailored response to those needs, while continuing to diversify its funding methods for corporate customers with the goal of ensuring the smooth provision of needed funds.

Making Our Services More Convenient and More Secure

Internet Branch
We are currently operating an “online branch” via our website. Although new account applications must be sent by conventional mail, customers who already have accounts with us can now make a time deposit application online 24 hours a day, 365 days a year, eliminating the need to visit their local branch. We also offer special time deposits available only via the online branch. In this way, we are able to accept deposits from customers both inside and outside the areas served by our brick-and-mortar branches. To ensure strict security, we employ a one-time password system and other anti-crime measures.

Kiyo ONE da FULL Card
From May 2009, we began offering the Kiyo ONE da FULL Card, an IC bank card employing biometric user authentication, a (VISA) credit card function and a deferred payment electronic money function. To ensure maximum customer satisfaction, the card has been equipped with various features to make daily life easier for our customers.