Many Japanese banks in the countryside are struggling due to a shrinking population, but at a tiny credit union in the northernmost tip of the country, the situation is extreme.
Wakkanai Shinkin Bank serves customers in the city of the same name in northern Hokkaido. Once a bustling fishing hub, it has seen the number of residents roughly halve from its peak in 1964. Loan demand has plummeted, and the bank has turned to investing in Japanese government bonds (JGBs) to eke out a profit, a strategy that is now coming into question.
Led by its long-standing President Masatoshi Masuda, 72, who grew up in the area, the lender has been engaging with local businesses and community to nurture startups and turn around troubled ones. But the hard truth is there just aren¡¯t enough borrowers.
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