is a Japanese regional

bank 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. Becau ...

that is based out of

Morioka is the capital city of Iwate Prefecture located in the Tōhoku region of northern Japan. On 1 February 2021, the city had an estimated population of 290,700 in 132,719 households, and a population density of . The total area of the city is . ...

, the capital of

Iwate prefecture is a prefecture of Japan located in the Tōhoku region of Honshu. It is the second-largest Japanese prefecture at , with a population of 1,210,534 (as of October 1, 2020). Iwate Prefecture borders Aomori Prefecture to the north, Akita Prefectu ...

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 re ...

in the prefecture. The bank has branches in

Sendai is the capital city of Miyagi Prefecture, the largest city in the Tōhoku region. , the city had a population of 1,091,407 in 525,828 households, and is one of Japan's 20 designated cities. The city was founded in 1600 by the ''daimyō'' Date M ...

and

Hachinohe is a city located in Aomori Prefecture, Japan. , the city had an estimated population of 221,459, and a population density of 725 persons per km2 in 96,092 households, making it Aomori Prefecture's second largest city by population. The city ...

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

Sapporo ( ain, サッ・ポロ・ペッ, Satporopet, lit=Dry, Great River) is a city in Japan. It is the largest city north of Tokyo and the largest city on Hokkaido, the northernmost main island of the country. It ranks as the fifth most populous ci ...

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 An economic bubble (also called a speculative bubble or a financial bubble) is a period when current asset prices greatly exceed their intrinsic valuation, being the valuation that the underlying long-term fundamentals justify. Bubbles can be c ...

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 hedge ...

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 fo ...

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 is the largest bank in Japan. It was established on January 1, 2006, following the merger of the Bank of Tokyo-Mitsubishi, Ltd. and UFJ Bank Ltd. MUFG is one of the three so-called Japanese "megabanks" (along with SMBC and Mizuho). As such, ...

, and the

Sumitomo Mitsui Banking Corporation is a Japanese multinational banking and financial services institution headquartered in Yurakucho, Chiyoda, Tokyo, Japan. The group operates in retail, corporate, and investment banking segment worldwide. It provides financial products and s ...

. 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's the nation's largest employer, with over 400,000 employees, and run ...

, 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