Trend of JAs' Loans

JAs' loan business is unique compared to other banking institutions in that the largest portion of their loans is accounted for by loans to individuals. The share of loans made out to individual persons accounts for 24% of all loans in case of Domestically Licensed Banks and for 31% with Shinkin Banks (credit unions) whereas comparable figure for the JAs is way different at 81%.

Furthermore, because much of the loans by general banks is made out to business firms to cover their purchasing operations and, therefore, recoverable in short-term, the share of long-term loans in all the lending operations stays at 41% in case of Domestically Licensed Banks and at 48% with Shinkin Banks whereas comparable figure for the JAs is much higher at 88%. This higher share of long-term loans reflects higher weight of fund for agricultural facilities and housing fund.

Yet another uniqueness of JA banking business is found in its low ratio of outstanding loans against outstanding deposits. This ratio ranges from 70% to 80% with other banking institutions, while it is way low with JAs at around 30%.

Trend in the Amount of JA Loans and Its Annual Growth Rate

Source: Survey by the Norinchukin Bank
Note: The amount of loans here does not include loans of Agriculture, Forestry and Fisheries Finance Corportion Funds, Mutual Insurance Loans and Loans to banking institutions.

Notable Features of JA Loans (2003)

Source: Survey by the Norinchukin Bank; “FINANCIAL AND ECONOMIC STATISTICS MONTHLY”, Bank of Japan

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