Regional bank in Japan battles ultra-low rates with wine bar, sea urchins

I started my own export business with my own savings.It grows at well over 10% a year.

Why, would I need a bank loan?

What I did need was information, know how, products to sell in the right place and customer demand.

Making businesses profitable in 3-5 years?

I was profitable after 6 months.

Placing overpriced products on a table in some far away village in Yamaguchi just won’t cut the mustard.

@Kurisupisu

Organic growth is a very slow and stable way to grow, as your 10% yearly revenue increase suggests, but I can't see any downside to a loan with the low interest rates here in Japan and no penalty for early repayment. For cash flow for some businesses this is essential. Also, why operate a company with your own money if you can do this with the banks?

As for this news, seems like a smart idea for these banks to diversify and at the same time support their region.

years of near-zero interest rates in Japan make traditional lending barely profitable

The same could be said for interest on savings.

If banks really wanted to drum up business, how about making them more accessible to the public. In Japan they put up so many barriers, eg re-arrange the banks and have a one to one sit down with customers and no physical barriers in between. Get rid of a much paperwork as possible. Get rid of the stupid 'take a number and wait' system. Stick a kids area in the corner. etc etc etc

Kurisupisu

I started my own export business with my own savings.It grows at well over 10% a year.

Why, would I need a bank loan?

Good for you. You had savings to start your own business but you should remember someone might have a selling idea but no cash to execute the idea, cheap,easy funding from financial institution is necessary for startups.

High time that there were regional bank mergers.  won't entirely solve the problem, but will at least give some economies of scale.  also stop already with the ridiculous monetary policy.

Maybe the bankers are in the wrong place, bankers should concentrate on the basic rules of banking.

Anything else is nonsense.