JBIC’s new start: leveraging 70 years of history to shape the future

The New JBIC and post-2011 recovery

In April 2012, the Japan Bank for International Cooperation (JBIC) began a new chapter after being spun off from the Japan Finance Corporation (JFC). The appointment of OKUDA Hiroshi from the private sector—former president of Toyota Motor Corporation and chairman of the Japan Business Federation (Keidanren)—as its first governor was a strong statement of the bank’s new start.

Amid urgent needs such as the recovery and reconstruction of the global supply chains of Japanese companies affected by the Great East Japan Earthquake, and the rapid appreciation of the yen, regulations concerning bank operations were amended under the Japan Bank for International Cooperation Act, which came into effect in May 2011.

These changes expanded JBIC's mandate, allowing it to finance large-scale infrastructure or export projects requiring large amounts of capital that cannot be handled by private financial institutions alone. Export financing to developed countries became permitted “when it is prescribed by a cabinet order as being a case recognized especially necessary in order to promote the policies of the government concerning the maintenance or improvement of the international competitiveness of Japanese industries.”

The amendments also introduced measures to support mid-tier enterprises (MTEs) and small and medium-sized enterprises (SMEs) seeking international expansion. These included the provision of two-step loans and guarantees for currency swap transactions, enabling private financial institutions to procure local currency more efficiently.

Law amendment expands the scope of assistance

The law was amended twice since then, reinforcing JBIC’s operational functions. In 2016, Special Operations were introduced to cover projects related to the development of overseas infrastructure. Financial support mechanisms were also diversified, including two-step loans for intermediary banks and acquisition of corporate bonds, such as project bonds, to bolster overseas infrastructure initiatives.

During the COVID-19 pandemic, JBIC launched the “Emergency Window for Overcoming the COVID-19 Crisis” in April 2020, and the “Post-COVID-19 Growth Facility” in the following January. Overseas investment loans for businesses in developed countries and domestic loans for large companies were permitted as a temporary measure. Addressing global supply chain disruption, JBIC helped Japanese companies maintain their overseas operations.

The 2023 amendment reinforced JBIC's functions in order to respond to the drastically changing international situation. New measures included enhancing the resilience of Japanese companies’ supply chains; assisting more risk-taking by companies and startups; and participating in international support for Ukraine’s recovery.

Throughout its more than 70-year history, which began with the establishment of the Japan Export Bank in 1950, JBIC has fulfilled its role as a policy-based financial institution that contributes to the sound development of Japan and the international economic community through flexibly adapting its role and structure. JBIC remains committed to finding solutions to challenges confronting the international community.