Nippon Shinko Bank began operating Wednesday as an entity dedicated to offering unsecured loans to small and midsize companies in the area centering on Tokyo.
The bank is the brainchild of young business leaders in the capital, as well as Takeshi Kimura, a well-known financial consultant and former adviser to the Financial Services Agency. These individuals believe major banks are incapable of providing smaller firms with sufficient funds.
Nippon Shinko has its headquarters in Tokyo's Otemachi district and has no branch offices. Its president, Yuko Oana, is a former senior managing director at the former Dai-Ichi Kangyo Bank.
In addition to providing loans without collateral, the new bank spends a shorter time examining loan applications than other banks.
In exchange for these favorable terms, the bank levies relatively high interest rates on loans.