Daily BriefsESG

Daily Brief ESG: When Will Kyoto Bank’s Policy Change? and more

In today’s briefing:

  • When Will Kyoto Bank’s Policy Change?

When Will Kyoto Bank’s Policy Change?

By Aki Matsumoto

  • The current shareholder structure of Kyoto Bank, where domestic financial institutions are the top shareholders and still continue to hold cross-shareholdings, will make it difficult to pass the shareholder proposal.
  • In environment of continued sluggish bank earnings, the dividend income from policy shareholdings and the huge unrealized gains on stocks are valuable assets for weathering this difficult business environment.
  • Kyoto Bank’s policy will change when the interest rate environment changes and earnings are expected to improve, or when the shareholder structure changes due to a significant reduction in cross-shareholdings.

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