SME Financing in Japan

Transcription

1 2015/FDM1/012 Session: 3 SME Financing in Japan Purpose: Information Submitted by: Japan Finance and Central Bank Deputies Meeting Tagaytay, Philippines 5-6 March 2015

2 Session3 Promoting Financial Integration - SME Financing in Japan - APEC Finance and Central Bank Deputies Meeting March 05, 2015 Noriyuki MITA Deputy Vice Minister for International Affairs Ministry of Finance, Japan

3 Approach to enhance SME financing in Japan Stage of Development Mortgage Based Lending Other Asset Based Lending Risk Financing Information Infrastructure Establishing Infrastructure - Credit Risk Database (Data Collection through Credit Guarantee Mechanism etc.) - Movable Collaterals System - Electronically Recorded Monetary Claims (Legal Infrastructure: Collaterals, Bankruptcy, etc.) Financial Service Improving Risk Evaluation - Enhancing Capacity of Risk Evaluation of Financial Institutions - Reviewing and Modifying Inspection Manual by Regulation Bodies Basic Literacy Improving Financial Literacy in MSMEs - Accounting and Tax etc. - Drawing up the Financial Statements (B/S, P/L etc.) and Business Plan (General Accounting Standard for SMEs in Japan) Improved Access Risk Mitigation Support - Credit Guarantee Mechanism - Lending and Guarantee by Japan Finance Corporation 2

4 Capacity Building on Accounting and Tax etc. for MSMEs Cases and Efforts in Japan I. Capacity Building Programs for MSMEs Seminar to Familiarize the General Accounting Standard for SMEs in Japan by the Organization for Small and Medium Enterprises and Regional Innovation * in order to encourage MSMEs to draw out the financial statements and business plan, incentives such as a preferential interest rate for borrowing and discounted commission rate for guarantee are offered. Seminar in Accounting by the Chamber of Commerce and Industry Tax Training Program by Corporate Association Instruction in Tax Return by Blue Return Association Consulting and Instruction by Tax Accountants Association Forum on Business Succession and Treasury Management by Japanese Association for Financial Planners II. Other Activities (Financial and Tax Literacy in School Education) Financial Literacy by Japanese Bankers Association Tax Literacy by Corporate Association, Blue Return Association and Tax Accountants Association 3

5 Risk Mitigation Support in Japan Use of credit guarantee as basic mechanism Movement towards SME loans without excessive reliance on collateral and guarantee. More rigorous evaluation of credit risks in credit extension needed SMEs financing Financial institutions Guarantee Fee Guarantee Payment in the event of default Gov. Budget support Credit Guarantee Corporations Insurance Japan Finance Corporation Payment in the event of default 4

6 Mechanism of CRD database Mechanism of CRD Database Members Credit guarantee corporations Public and private financial institutions Financial data(b/s P/L data) Non-financial data Information on default 1st cleansing Services 1Scoring service 2Sample data provision 3Statistical information provision 4Other services CRD Database Data stored in anonymous forms 2nd cleansing Consolidation Database for CRD members 5

7 Registration system of assignment of movables and claims Japan has introduced a registration system in which the perfection requirement for an assignment shall be met when the registration of the assignment is made.* It is possible to register not only individual movable or claim, but also set of movables or claims. Assignee (lender) loan Assignor (borrower) Assignee (lender) loan Assignor (borrower) assignment movables like Inventory etc. assignment claims like accounts receivable Announcement Registry office (registration files) 第三債務者第三債務者 Obligor * Act on Special Provisions, etc. of the Civil Code Concerning the Perfection Requirements for the Assignment of Movables and Claims 6

8 Electronically Recorded Monetary Claims A new type of claims that are different from both bills/notes and nominative claims.* Accrue/be assigned by way of making an accrual/assignment record. Will not be invalid, even if the underlying debt is extinguished. Recording Institution The Registry Ensures the same level of security of transactions as bills/notes. Existence/ownership of the claim is visible in the form of electric records. (1) Accrual record (2) Assignment record obligor obligee new obligee (1) issuance (2) assignment (3) settlement of remittance between accounts Ensures flexibility and convenience, which are lacking in bills/notes. Can be split. Eliminates cost of preparation, custody, stamp duty, etc. No risk of loss/theft. Can meet various business needs other than being used like bills/notes. * Electronically Recorded Monetary Claims Act 7