is a Japanese regional bank

Bank

A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...

 that is based out of Morioka

Morioka, Iwate

is the capital city of Iwate Prefecture, Japan.As of 2005, the city has an estimated population of 300,740 and a population density of 588.11 persons per km². The total area is 489.15 km²....

, the capital of Iwate prefecture

Iwate Prefecture

is the second largest prefecture of Japan after Hokkaido. It is located in the Tōhoku region of Honshū island and contains the island's easternmost point. The capital is Morioka. Iwate has the lowest population density of any prefecture outside Hokkaido...

 in the Tohoku region

Tohoku region

The is a geographical area of Japan. The region occupies the northeastern portion of Honshu, the largest island of Japan. The region consists of six prefectures : Akita, Aomori, Fukushima, Iwate, Miyagi and Yamagata....

. The Morioka branch building, the site of the old Morioka Bank, is a historic landmark in the prefecture. Recently, the bank has opened branches in Sendai

Sendai, Miyagi

is the capital city of Miyagi Prefecture, Japan, and the largest city in the Tōhoku Region. In 2005, the city had a population of one million, and was one of Japan's 19 designated cities...

 and Hachinohe

Hachinohe, Aomori

- Neighbouring municipalities :Aomori Prefecture*Sannohe District**Hashikami**Gonohe**Nanbu*Kamikita District**OiraseIwate Prefecture*Karumai-History:...

; unfavorable business conditions forced the bank to close a branch in Sapporo

Sapporo, Hokkaido

is the fourth-largest city in Japan by population, and the largest city on the island of Hokkaido. It is the capital of Hokkaidō Prefecture, located in Ishikari Subprefecture, and an ordinance-designated city of Japan....

.

Profile

As of March 31, 2005:

Assets: Approximately ¥2.3 trillion (approximately $21 billion)

Employees: 1,596

Branches: 110 (95 in Iwate prefecture)

President: Katsumi Nagano

Member: Regional Banks Association of Japan

History

The bank was created from capital from Iwate prefecture in the wake of a 1932 banking crisis that affected other regional banks, including the Morioka Bank. Originally established as the Iwate Shokusan Bank, the bank changed its name to its current form in 1960.

During the bubble economy era of the late 1980s, the Bank of Iwate was known for its sound lending practices, and as a result, was relatively stable during the period following the collapse of the bubble. While the bank has dropped in its rankings in recent years, it is said to maintain high standards. The bank has recently diversified, offering insurance

Insurance

In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...

 and securities

Security (finance)

A security is generally a fungible, negotiable financial instrument representing financial value. Securities are broadly categorized into:* debt securities ,* equity securities, e.g., common stocks; and,...

 services for customers.

Financial issues

The Bank of Iwate faces competition from national banks that are continuing to expand business services in Morioka, including the Bank of Tokyo-Mitsubishi, and the Sumitomo Mitsui Banking Corporation

Sumitomo Mitsui Banking Corporation

is a Japanese bank based in Yurakucho, Chiyoda, Tokyo, Japan. It is a member of the Sumitomo Group and Mitsui Group. As of the year 2009, SMBC was the second largest bank in Japan in terms of assets.-History:...

. One long-term issue that will face Japan's regional banks will be the level of competition from Japan Post

Japan Post

was a government-owned corporation in Japan, that existed from 2003–2007, offering postal and package delivery services, banking services, and life insurance. It had over 400,000 employees and ran 24,700 post offices throughout Japan and was the nation's largest employer. One third of all Japanese...

, the Japanese postal system which is also the world’s largest savings institution, by assets, when it is privatized in 2007.

External links

Official site English part of official site