Nippon Kangyo Bank

The Nippon Kangyo Bank or Hypothec Bank of Japan (HBJ) was a major Japanese bank headquartered in Tokyo, established in 1897 as the first of a string of policy institutions ("special banks") that subsequently included Bank of Taiwan (est. 1899), Hokkaido Takushoku Bank (est. 1900), and Industrial Bank of Japan (est. 1902), with the aim to promote agriculture and industrial development by providing mortgage ("hypothecary") loans.[3]

In 1971, Nippon Kangyo Bank merged with Dai-Ichi Bank to form the Dai-Ichi Kangyo Bank, subsequently Japan's largest bank and a predecessor to Mizuho Financial Group.

Overview

Nippon Kangyo Bank was founded in 1897 as a governmental institution providing long-term light industrial and agricultural loans under the Nippon Kangyo Bank Act of 1896. The Industrial Bank of Japan was also founded in 1902, providing long-term heavy industrial loans. Nippon Kangyo Bank had offices only in Tokyo and Osaka, leaving nationwide local services in the charge of its subsidiaries known as Noko Bank (lit. Agricultural and Industrial Bank). A Noko Bank was established in each of the prefectures of Japan, except for Hokkaidō where a similar role was played by Hokkaido Takushoku Bank.

In order to provide long-term loans, the bank's source of funds was not deposits but securities. The bank was also authorized to issue premium-bearing debentures. The bank financed, however, landlords and partnerships, and there were little money to go around individual farmers. In 1911 the Nippon Kangyo Bank act was amended so that Nippon Kangyo Bank could handle deposit accounts and offer short-term finance. In the latter of Taishō period the bank embarked on real estate investments, while Noko Banks were absorbed into Nippon Kangyo Bank one after another. The bank dramatically increased its scale of operations.

During World War II, Nippon Kangyo Bank was the lead management underwriter of

See also

• List of banks in Japan