The Norinchukin Bank is a Japanese cooperative bank serving over 5612 agricultural, fishing and forestry cooperative

Cooperative

A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...

s from its headquarters in Tokyo

Tokyo

, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...

. Its members include cooperative federations such as the Japan Agricultural Cooperatives

Central Union of Agricultural Cooperatives

Observers have suggested that the great influence of the Japanese Central Union of Agricultural Cooperatives in policy making partly resulted from a widespread feeling of gratitude to the dwindling agricultural sector, which in the past supported the country's industrial modernization...

 (JA) and the Japan Fishery Cooperatives (JF). Norinchukin supports political lobbies who oppose agricultural imports and the deterioration of living standards in rural areas. Norinchukin has 16,000 offices throughout Japan's 47 prefects and assets exceeding ¥32.5 trillion.

History

The Norinchukin Bank was founded on December 20, 1923 by the Japanese government to support the country's agriculture industry. Norinchukin is derived from the Japanese words No - Rin - Chu - Kin (Agriculture, forestry, cooperative, bank). Norinchukin suffered from a lack of investment funds during World War II

World War II

World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

, due to restrictions by the Japanese government. After the war, Norinchukin played an important role in rebuilding the country. Once the government encouraged divestment in the textile industry, Norinchukin formed a political lobby to support the agriculture sector.
In 1979, Norinchukin set up an international department and formed a relationship with the Bank of Japan

Bank of Japan

is the central bank of Japan. The Bank is often called for short. It has its headquarters in Chuo, Tokyo.-History:Like most modern Japanese institutions, the Bank of Japan was founded after the Meiji Restoration...

. Low interest rates in the 1980s impacted Norinchukin's profitability. The Japanese government

Government of Japan

The government of Japan is a constitutional monarchy where the power of the Emperor is very limited. As a ceremonial figurehead, he is defined by the 1947 constitution as "the symbol of the state and of the unity of the people". Power is held chiefly by the Prime Minister of Japan and other elected...

 adjusted the charter of Norinchukin in 1986 and allowed the bank to operate as a commercial bank.
Following the recession in 2008, Norinchukin indicated it had ¥9.7 billion in losses related to the subprime mortgage crisis

Subprime mortgage crisis

The U.S. subprime mortgage crisis was one of the first indicators of the late-2000s financial crisis, characterized by a rise in subprime mortgage delinquencies and foreclosures, and the resulting decline of securities backed by said mortgages....

. For the 2009 fiscal year, Norinchukin posted a net income of ¥29.5 billion.