The Characteristics of the Bank Business

The bank’s capital is composed of common stocks, including lower dividend rate stocks, and pre-ferred stocks. Common stocks, amounting to ¥200 billion, are the most basic means of fund-rais-ing for the bank, and these are purchased by all of the shareholding member cooperatives. Lower dividend rate stocks are one type of common stock that are underwritten by certain members for specific purposes and are subject to special conditions whereby the equity dividend rate is lower than that of common stocks. Preferred stocks are equity funds purchased by non-members with no voting rights. Perpetual subordinated loans and subordinated loans with maturity in Tier II classification under BIS requirements and borrowed from cooperative members amounting to ¥705 billion serve to enhance the bank’s overall capital position.…