Supporting Effective Governance by Drawing on Experience Gained in Both Frontline Operations and Management
For four years from 2018, I was responsible for executive management as JBIC’s 19th Governor. In 2022, I became JBIC’s first Chairman of the Board of Directors and have since served as chair of the Board. At the press conference when I became Governor, I received many questions about being the first Governor appointed from within the organization. I responded by saying, “No one understands this bank's operations or frontline realities better than I do.” With that confidence, I was strongly committed to leading the organization based on my own judgment and taking responsibility for my decisions. Precisely because I have experience in executive management as Governor, I understand what executive management is thinking and where the difficulties lie. As Chairman of the Board, however, I believe my role is to take a step back from executive-management and, with an understanding of JBIC’s capabilities, exercise oversight and provide guidance to executive management from a broader perspective.
When I was Governor, the Governor also chaired the Board of Directors, a legacy of our special public corporation era. In 2022, however, we reorganized and fundamentally transformed our governance framework to separate the supervisory and advisory function from business execution and thereby enhance governance. What matters is that execution and supervision each fulfill their respective roles and function effectively in relation to one another.
JBIC’s Board of Directors is not a forum for merely rubber-stamping decisions made by the Executive Committee. At Board meetings, we engage in vigorous debate rather than settling for a predetermined consensus and, when necessary, point out problems and areas requiring corrective action or raise questions for executive management to address. I believe it is precisely this kind of constructive tension that makes governance truly effective.
JBIC is currently engaging in projects under the Japan-U.S. Strategic Investment Initiatives. Under the JBIC Act, we must conduct rigorous due diligence. Undoubtedly, this is an accountability we owe to the Diet and taxpayers. As a policy-based financial institution making important decisions, the Board of Directors must understand and share information on various circumstances in partner countries, including the U.S. At the same time, taking into account the perspectives of Japan, the world, and society as a whole, we must discuss each project on its merits and make decisions about what is necessary for Japan’s national interests, what significance it has for the partner country and the international community, and whether it is truly a project that JBIC should undertake.
The Role Expected of JBIC as a “Navigator” for Japanese Companies
The world is undergoing profound change. Geopolitical risks, economic security, energy security, decarbonization, and technological innovation, including AI—none of these can be addressed simply by extrapolating from the past.
What is important is that we cannot simply wait for opportunities to come to us. Of course, it is important to assess and support projects brought to JBIC. However, that alone is not enough to fully support Japanese companies as they take on new challenges. How can we foster the growth industries of the future? How can Japanese companies gain access to new technologies and markets? JBIC needs to be involved in addressing these questions. As part of these efforts, JBIC IG Partners (JBIC IG) established a fund called NordicNinja*1. The fund invests in early-stage companies in Europe and supports the growth of its portfolio companies while involving Japanese companies, with some portfolio companies progressing toward IPOs. Since 2024, we have also begun supporting startups originating in Japan. This initiative targets middle- and later-stage companies and supports Japanese startups seeking to expand globally. Through these activities, I believe JBIC needs to contribute to Japan’s startup ecosystem.
What supports JBIC's value is its people and networks. Relationships with national governments, international financial institutions, and corporate leaders cannot be built overnight. It is because we have built trust over many years that we can engage with them when it truly matters. Now that I am in a non-executive position, I sometimes share with executive management information and perspectives gained through the networks I have developed over the years and provide guidance on the broader direction JBIC should take. We must not only possess expertise, but also accurately grasp the realities of what is happening overseas right now. I would like younger employees to gain overseas experience as early as possible and develop their own international outlook and personal networks.
I have been with JBIC and its predecessors for more than 40 years, but despite the changes over time, the question I constantly ask myself has remained the same: What kind of financial support does Japan truly need to serve its national interests? JBIC originated as an export credit agency providing officially supported financing under the OECD Arrangement. Since then, however, Japanese companies have expanded their overseas investment, and issues such as energy security, supply chain resilience, and economic security have become increasingly important. As a result, the role we are expected to play has also changed significantly.
I encourage Japanese companies to break free from conventional mindsets and consult JBIC about what they truly wish to achieve. We want to hear from you. JBIC seeks to remain a “navigator” for Japanese companies as they venture into new frontiers.
As Chairman of the Board of Directors, I will continue to foster a Board where members draw on diverse expertise, including that of Outside Directors, and engage in open and vigorous discussion while maintaining an appropriate degree of constructive tension. I will also work to further enhance the effectiveness of JBIC’s governance so that JBIC can continue to support Japanese companies as they take on challenges around the world and remain a policy-based financial institution trusted by society.
Managing Director, Chairman of the Board of Directors
MAEDA Tadashi
Note
- *1
Refers to JB Nordic Fund I SCSp and NordicNinja Fund II SCSp.