[in Japanese]

View full abstract

  In December 1999, the Investment Control Law passed the Diet as a way to deal with over-indebtedness and illegal collection induced by SFCG (Shoko Fund) and Nichiei, which were the two biggest companies in Japan’s business finance market at that time, so-called “shoko-loans problem”. As a result, in June 2000 the maximum annual interest rate was suddenly lowered from 40.004% to 29.2%. The maximum interest rate was applied to not only business finance lenders, but also consumer finance lenders. Thus, most of consumer finance lenders were thrown into confusion by the sudden strengthened business regulations. Then, the JCFA (Japan Consumer Finance Association) conducted a questionnaire survey to grasp the member’s economic conditions.
  The author acquired the date set of the survey from JCFA and analyzed it in this time. Through the analysis, he found that lowering the interest cap without enough grace period had led many consumer finance lenders to excess lending for short-term profits. Later, their credit management may have partially induced “heavily-indebted people problem” in Japan’s consumer finance market.

View full abstract

  These days many enterprises tend to employ handicapped persons. And I suppose that this trend doesn’t change. But the period that most handicapped persons work at a company is short, most of them retire in several years. Handicapped person’s employment has two aspects: social participation and income security. But it is impossible to promote their social participation and to ensure their income security. Therefore I suppose handicapped persons start their enterprises to create their own jobs, they establish work-life balance, and create good environment to work being supported by their supporters. I suppose to introduce the rotating credit association as the way of fundraising.

View full abstract

  Yuriage Area in Natori Miyagi suffered serious damage by a great earthquake disaster. The Yuriage Warf Morning Market (YWMM) will be rebuilt on earthquake disaster revival of Yuriage Area. As YWMM has more than 40 years of history, expectations for recovery of the market are growing bigger in and out of Natori. Therefore, the objective of this work arranged the action of the conventional YWMM for chronological order. As a result, YWMM is regaining a constant customer after an earthquake disaster. However, it is necessary to perform activity to reclaim reading of the needs of the market and the new market to perform continuous business. Therefore a Social Funding becomes a more important method.

View full abstract

  Households’ financial transactions have been increasing in recent years. In the United States, the household as a fund raiser has increased borrowing in the forms of mortgages and consumer credit. Households, as asset holders, own a great deal of stocks and real estate, such as housing. The borrowing of households has become greatly affected by their asset value fluctuation, as financial instruments by which to borrow against the collateral assets held by households have become more popular in recent years.
  US financial institutions have been expanding their financial business in those areas that target households. Financial institutions have increased lending to households, while expanding the volume of target customers and the auspices of loan collateral. At that time, financial institutions attempted to reduce their credit risk by using securitization; however, the credit cost of US financial institutions increased rapidly during the 2008 financial crisis. In looking at its content, credit cost increased rapidly—not only with respect to mortgages, but also in other areas, such as credit cards. To date, financial institutions have applied credit risk management to each distinct loan product; however, at the time of the financial crisis, increased credit risk with respect to mortgages (i.e., due to the decrease in housing prices) also affected credit risk with respect to credit cards and other products. As such, the risk management undertaken by financial institutions—which has previously been done through the use of traditional financial instruments and business lines—may have become insufficient. Overall, I do believe that financial institutions require an integrated risk management strategy with respect to the financial transactions of households and individuals.

View full abstract