An Environment Where Experts from Diverse Fields Engage in Frank Discussion Enables Management to Be Examined from Multiple Perspectives
Since joining the former Sumitomo Bank (currently Sumitomo Mitsui Banking Corporation), I have spent my entire career in the financial industry. I was involved in management as Deputy President of Sumitomo Mitsui Banking Corporation and as President of Sumitomo Mitsui Finance and Leasing Co., Ltd. I have worked with JBIC on project finance and other transactions, and also served as an expert member of a government committee when Nippon Export and Investment Insurance (NEXI), another government-affiliated financial institution like JBIC, was established. Following these experiences, I became an Outside Director of JBIC in 2018.
I believe that the role expected of me is to bring the perspective of a private financial institution to JBIC’s management. As a policy-based financial institution, JBIC has an important mission to support Japan’s policy objectives and national interests. At the same time, because JBIC is required to ensure financial soundness, perspectives similar to those of private financial institutions are indispensable when making financing and investment decisions and managing risks. At Board of Directors meetings, therefore, I consistently voice my views, keeping questions in mind such as, "How would a private financial institution assess this?" and "How would the market perceive this?" I believe that bringing diverse perspectives to management is an important role of an Outside Director. One aspect of JBIC’s governance that I particularly value is the environment that enables Outside Directors to engage in frank discussions based on sufficient information. Through individual interviews with management, briefings on projects by the departments responsible, and site visits in Japan and overseas, I am able to deepen my understanding of JBIC’s operations and activities. There is also close information sharing with Audit Supervisory Board Members, creating a framework that enables management to be examined from a variety of perspectives. In addition to the Board of Directors, I participate in the Internal Audit Committee, the Management Advisory and Evaluation Committee, and the Risk Advisory Committee. I think that a culture in which members with diverse expertise actively exchange views and apply their knowledge to management is one of JBIC’s distinctive strengths.
Continuing to Provide a Private-Sector Perspective while Recognizing JBIC’s Role in a Changing World
Compared with 2018, when I became an Outside Director, the role expected of JBIC has changed significantly. In recent years in particular, JBIC’s mission as a policy-based financial institution has become even more important, encompassing not only the enhancement of the international competitiveness of Japanese companies but also the restructuring of supply chains, support for startups, and investment support in strategic sectors. Due to this, projects have become increasingly complex, requiring difficult decision-making on how to balance policy significance with ensuring financial soundness. This is why I believe that, as an outside director, it is increasingly important for me to continue providing the perspective of "how the private sector would approach the matter." Investment in human resources and improvements in operational efficiency are also important in responding to an increasingly complex environment. Going forward, JBIC must further enhance its working environment and compensation framework to enable talent to fully demonstrate their capabilities, while strengthening its framework for prompt, high-quality decision-making. In terms of operational efficiency, I feel that awareness of the need to streamline business processes is steadily taking root throughout the organization.
By drawing on the knowledge I have accumulated over many years and continuing to express frank views as an outside director, I hope to contribute to further enhancing JBIC’s value as it supports the development of Japanese companies and the international community.
Managing Director (Outside Director)
KAWAMURA Yoshinori