, is a public corporation that provides

financial services Financial services are service (economics), economic services tied to finance provided by financial institutions. Financial services encompass a broad range of tertiary sector of the economy, service sector activities, especially as concerns finan ...

in Japan and internationally. Its headquarters are located in

Tokyo Tokyo, officially the Tokyo Metropolis, is the capital of Japan, capital and List of cities in Japan, most populous city in Japan. With a population of over 14 million in the city proper in 2023, it is List of largest cities, one of the most ...

, Japan.

Overview

JFC is a policy based

financial institution A financial institution, sometimes called a banking institution, is a business entity that provides service as an intermediary for different types of financial monetary transactions. Broadly speaking, there are three major types of financial ins ...

whose co-function is the provision of business loans to SMEs and business start-ups; and educational loans to individuals for school entrance fees and related expenses. All these are with the aim of complement financial activities carried out by privately owned financial institutions as well as improve the living standards of the Japanese people. The company has 152 branch offices in Japan, 2 representative offices overseas, and a workforce of 7,364 employees.

History

Japan Finance Corporation was founded on 1 October 2008 with the passing of the Japan Finance Corporation Act. This Act led to the merger of four policy-based financing institutions i.e.: * The National Life Finance Corporation (NLFC) * The Agriculture, Forestry and Fisheries Finance Corporation (AFC) * The Japan Finance Corporation for Small and Medium Enterprise (JASME) and * The International Financial Operations of the

Japan Bank for International Cooperation The , JBIC, is a Japanese public financial institution and export credit agency that was created on October 1, 1999, through the merger of the Japan Export-Import Bank (JEXIM) and the Overseas Economic Cooperation Fund (OECF). JBIC became the ...

(JBIC). In April 2012, the Japan Bank for International Cooperation Act was passed. This led to the separation of the

(JBIC) from JFC. JBIC has since operated as an independent entity.

Operations

JFC has divided its operations in three units:

Micro Business and Individual Unit

This unit acts (Micro Unit) as a community based financial institution and provides loans to

small businesses Small businesses are types of corporations, partnerships, or sole proprietorships which have a small number of employees and/or less annual revenue than a regular-sized business or corporation. Businesses are defined as "small" in terms of being ...

, business start-ups and educational loans to individuals. the Micro Unit had made loans to 0.95 million businesses. It is estimated that 77,000 jobs were created and 110,000 educational loans are issued annually as a result of the Micro Unit.

Agriculture, Forestry, Fisheries and Food Business Unit

This unit (AFFF Unit) contributes to the development of domestic agriculture, forestry, the fishery industry and improved quality of food. This is by providing access to finance for individuals and businesses operating in these industries.

Small and Medium Enterprise Unit

Recognizing that SMEs play a key economic role in the Japanese economy, this unit assists in the development and growth of SMEs through the provision of financial support in the form of loans and credit insurance.

Ownership

JFC is wholly owned by the

Japanese government The Government of Japan is the central government of Japan. It consists of legislative, executive and judiciary branches and functions under the framework established by the Constitution of Japan. Japan is a unitary state, containing forty- ...

Governance

JFC is governed by a five-person board of directors with Koichi Hosokawa as the Governor and Chief Executive.

References

{{authority control Japanese companies established in 2008 Financial services companies established in 2008 Government-owned companies of Japan