Makoto Kitamura, Chairman of the National Federation of Shinkumi Banks

Supporting communities and people across the country as a core credit union

Chairman of the National Federation of Shinkumi Banks　Makoto Kitamura(Kitamura Makoto)

■ Profile

Graduated from the School of Political Science and Economics at Waseda University in March 1984, and joined the Ministry of Finance (now the Ministry of Finance) in April of the same year.
In July 2019, he served as Director of the Kanto Local Finance Bureau, and in July 2021, he served as Managing Director of the National Association of Shinkin Banks.
In June 2023, he became chairman of the National Federation of Credit Unions.

The Shinkumi Federation of Credit Cooperatives (NFC) is the central organization for Japan's 145 credit unions nationwide, and plays a vital role in Japan's financial system. Its chairman, Makoto Kitamura, has experience in various administrative fields, including finance, fiscal policy, and earthquake reconstruction, and has served as Director-General of the Kanto Regional Finance Bureau. We spoke with Kitamura about the role credit unions play in society, why they are essential, and the future of credit unions.

■Administrative studies was the catalyst that led to where I am today

During my university years, I studied law, hoping to learn about politics and economics. Wanting to broaden my horizons, I actively attended lectures given by prominent people on campus. As I continued to study a variety of subjects, I became particularly interested in public administration, which combines aspects of politics, economics, and sociology. In my third year of university, I took a seminar on public administration, which allowed me to study it in more depth, and I think it was around that time that I began to consider public administration as a career.
In the same year, I passed the civil service exam, which allowed me to visit government offices and see all of them with my own eyes. Among them, the ones that particularly attracted me were the Ministry of Finance (now the Ministry of Finance) and the National Police Agency. At one point, I had decided to go to the National Police Agency, but after receiving a strong invitation from the Ministry of Finance, I decided to join the Ministry of Finance.
After retiring from the Ministry of Finance in 2020, I worked at the Norinchukin Research Institute and the National Association of Shinkin Banks. Coincidentally, both were financial organizations known as "cooperative financial institutions" (laughs).

■ Supporting the local community through support from credit unions

The National Federation of Shinkumi Associations (hereafter referred to as Zenshinren), of which I currently serve as chairman, and the credit unions that we support are also cooperative financial institutions. Similar to banks, they take on roles such as deposits and loans, but the biggest difference is that they prioritize the interests of their members (customers). While typical banks are corporations supported by shareholder investments and operate with a profit-making purpose, credit unions' primary goal is to support their members. And by supporting their members, they play a role in contributing to the local community.
I believe that credit unions are the most community-based financial institutions. Without community ties, credit unions cannot fulfill their role. There are 145 credit unions nationwide, but each has a different operating area and target membership. For example, there are "regional credit unions" whose members are business owners and residents within a specific area, as well as "occupational credit unions" like the Metropolitan Police Department Credit Union, which has employees of the Tokyo Metropolitan Police Department and the National Police Agency as its members. For this reason, the services desired by each credit union for its members vary. I believe our most important role is to recognize the differences between all credit unions and consider how to provide appropriate support.
It is not uncommon for individual credit unions, which have limited areas of operation, to lack the necessary knowledge to support their members. This is why the Japan Federation of Credit Unions, a central organization that collects a variety of information, provides support by introducing examples from other credit unions and by seconding staff from the Federation of Credit Unions to credit unions.

■ Change with changes in society

During my time at the Ministry of Finance, I twice served as director of a local finance bureau, which oversees shinkin banks and credit cooperatives. I believe this experience was a valuable opportunity to gain a deeper understanding of the roles and challenges faced by regional financial institutions. Now that I have assumed the position of chairman, I would like to make full use of that experience.
COVID-19 has been a huge shock to local communities, and local small and medium-sized businesses have experienced major changes, including a sharp drop in sales. In times like these, credit unions that can accurately respond to the needs of local and workplace communities are indispensable. Society is experiencing a variety of changes, not just due to COVID-19, but also due to a declining birthrate and aging population, and the SDGs. We would like to work with credit unions across the country to consider what is expected of credit unions in this context and what our role in supporting them should be.
Although it is not well known among students, Zenshin Kumiai also hires new graduates. We must understand what the 145 credit unions want and what challenges they face, and provide the necessary support. Communication with each individual credit union is also important. For this reason, we would like to see people who work with us have good communication skills, intellectual curiosity, and an interest and understanding of the work of a financial institution.

■Message to university students   

When I was a university student, most people's career goals were to get promoted at work, but I feel that many people of your generation are searching for the role they should play and are striving to contribute to society. I look forward to seeing you all succeed, and I hope you will also turn your attention to the world.
The environment surrounding us is becoming increasingly globalized compared to the past. It is precisely in times of such change that we must be familiar with the circumstances of other countries, where the speed of change is even faster. We must recognize that there are countries in the world with different structures than Japan, and that society is made up of diverse people. While the impact of the coronavirus has made it easy to focus on the domestic situation, I would like young people to have as broad a perspective as possible and be aware that they are living in a global society.
Young people today can achieve things that our generation couldn't. There are athletes like Shohei Ohtani who are doing great things in the United States. This is proof that, unlike before, the world is expanding and people can succeed in a variety of fields. I urge everyone to continue taking on bold challenges.

Interviewed by Student Newspaper Online on May 22, 2023 by Mai Wakao, a third-year student at International Christian University