国用糸金融と地方銀行:―小出銀行のビジネス・モデル― Silk Financing and Local Bank ::Business Model of Koide Bank
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Koide Finance Company was established in the early period of the Meiji era in Koide, the center of the silk-reeling industry in Niigata Prefecture. During its start-up stage, the company lent indiscreetly, and made excessive dividend payouts based on its simplistic objective of providing assistance to the silk-reeling industry, while also satisfying its shareholders by making a profit. Hence, towards the end of the 1880s, the company's operations came to a halt. Therefore the company restructured its business, and established a business direction with long-term prospects based on sound management. After the company had renamed itself Koide Bank, it expanded its silk financing, supported the sudden rise of Koide's machine-reeling silk industry, and Koide Bank's banking business and the silk-reeling industry in Koide district grew, from the first half of the 1890s to the mid-1900s. However, the silk produced in Koide was inferior in quality and low in productivity, and in market competition it lost out to Yokohama and Fukui. During this period, Koide Bank was unable to establish a stable revenue base.<br>During the economic crisis after the Russo-Japanese war, Koide Bank strengthened its stance by sound management. However, with the development of the silk-textile industry, silk financing expanded and deepened, due to increased lending to silk-reelers, the beginning of documentary bill financing, and the conclusion of correspondent agreements with banks in the prefecture's silk-textile industry. As a result of such actions, the Bank changed the delivery destination of the silk-reeling industry in the Koide district to markets within the prefecture. In this way, Koide Bank established a fund circulation structure throughout the Koide district, the silk-reeling industry of Koide, and the prefecture's silk-textile industry, from which, as a result of its pivotal position, it was able to receive stable revenue. This business mechanism can be shown to be one of the business models of the local banks that conduct silk financing.
- Keiei Shigaku (Japan Business History Review)
Keiei Shigaku (Japan Business History Review) 45(2), 2_3-2_28, 2010
Business History Society of Japan