Message from the President and CEO
In fiscal 2022, the supply constraints caused by the COVID-19 pandemic, combined with soaring energy and raw material prices against the backdrop of the Ukraine crisis, resulted in record inflation around the world, and policy rates were raised one after another, mainly in the United States and European countries. Although the Bank of Japan has maintained its stance of monetary easing, there have been some moves that could be regarded as policy corrections, and we recognize that the financial markets are under an unstable environment, as evidenced by the emergence of crises in some financial institutions overseas. While paying close attention to these circumstances, JFM will respond flexibly and appropriately to the implementation of various projects to ensure the stable continuation of its operations.
In fiscal 2023, JFM will provide loans to meet the financing needs of local governments for various projects included in the local government finance programme, such as the newly established decarbonization promotion projects, public facilities management promotion projects, water supply projects, and sewerage projects, for which high demand for financing is expected to continue.
In the area of funding operations, JFM will strengthen various ESG-related initiatives, including the issuance of green bonds, and will strive to constantly improve financing conditions through flexible and agile responses utilizing a variety of means, even under changing financial conditions, in order to meet the long-term and low-interest financing needs of local governments.
Also, in the area of local government support operations, we will further enhance the Business and Financial Management Enhancement Program by adding DX for local governments and other areas of support from this fiscal year. As a contribution to local government finances, a portion of JFM’s management account reserve for interest rate volatility will be attributed to the Japanese national government in the amount of 100 billion yen in fiscal 2023 in order to secure funds for local allocation tax. Together with the previously planned amount, a total of over 150 billion yen will be attributed to the Japanese national government.
In addition, JFM has strengthened our promotion system for sustainability, which is a common issue worldwide, by establishing Sustainability Committee. Based on its newly formulated Sustainability Policy, JFM will give consideration to ESG factors throughout its entire business covering lending, funding, and local government support, and thereby will further contribute to the creation of sustainable local communities.
JFM, under the management philosophy and motto, "Supporting local governments through finance to create a future for regions," will strive to fulfill its required role as a joint funding organization and contribute to the sound financial management of local governments, which directly relates to the credibility of JFM itself, fully considering a wide range of opinions, issues and needs of local governments.
We appreciate the cooperation and support of all related persons.
President and CEO