is a Japanese regional bank that is based out of

Morioka is the capital Cities of Japan, city of Iwate Prefecture located in the Tōhoku region of northern Japan. On 1 August 2023, the city had an estimated population of 283,981 in 132,719 households, and a population density of . The total area of t ...

, the capital of

Iwate prefecture is a Prefectures of Japan, prefecture of Japan located in the Tōhoku region of Honshu. It is the second-largest Japanese prefecture (behind Hokkaido) at , with a population of 1,165,886 (as of July 1, 2023). Iwate Prefecture borders Aomori Pre ...

in the Tohoku region. The Morioka branch building, the site of the old ''Morioka Bank'', is a

historic landmark A historic site or heritage site is an official location where pieces of political, military, cultural, or social history have been preserved due to their cultural heritage value. Historic sites are usually protected by law, and many have been rec ...

in the prefecture. The bank has branches in

Sendai is the capital Cities of Japan, city of Miyagi Prefecture and the largest city in the Tōhoku region. , the city had a population of 1,098,335 in 539,698 households, making it the List of cities in Japan, twelfth most populated city in Japan. ...

and

Hachinohe is a city located in Aomori Prefecture, Japan. , the city had an estimated population of 213,453 in 110,121 households, and a population density of . As of October 2020, Hachinohe is Aomori Prefecture's second largest city by population. The c ...

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

Sapporo is a Cities designated by government ordinance of Japan, designated city in Hokkaido, Japan. Located in the southwest of Hokkaido, it lies within the alluvial fan of the Toyohira River, a tributary of the Ishikari River. Sapporo is the capital ...

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 Bubble, Bubbles or The Bubble may refer to: Common uses * Bubble (physics), a globule of one substance in another, usually gas in a liquid ** Soap bubble * Economic bubble, a situation where asset prices are much higher than underlying fundame ...

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 is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect ...

and

securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...

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 A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. As banks ...

, and the

Sumitomo Mitsui Banking Corporation is a Japanese multinational banking financial services institution owned by the Sumitomo Mitsui Financial Group, which is also known as the SMBC Group. It is headquartered in the same building as SMBC Group in Marunouchi, Chiyoda, Tokyo, Japan. ...

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

Japan Post was a Japanese statutory corporation that existed from 2003 to 2007, offering postal and package delivery services, Retail banking, banking services, and life insurance. It is the nation's largest employer, with over 400,000 employees, and ru ...

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

External links

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Official site
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Google Finance
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* Wiki collection of bibliographic works on Bank of Iwate Regional banks of Japan Companies based in Iwate Prefecture Morioka, Iwate Companies listed on the Tokyo Stock Exchange Banks established in 1932 1932 establishments in Japan {{Asia-bank-stub