Initiation Speech
Jan. 25th, 2006
Mr. Shigemitsu Miki
Mr. Yozo Izuhara,
“Direction of Future Banking Management”
Mr. Shigemitsu Miki,
Director and Chairman of the Bank of Tokyo Mitsubishi UFJ, Ltd.
The banking sector is almost near to the end of its bad-loan problem, a top-priority issue, with surplus being steadily fixed in its underlying business trend. Japanese banks have already transformed to a great extent, and moved forward with the implementation of aggressive management. In light of these, it is important to speak about future banking management, particularly, touching two topics of mega-banks’ business direction.
1. The first topic is provision of overall financial services. Each bank is expanding services incorporating trusts, securities, and insurance, as well as over-the-counter sales of investment trusts and insurance products, by means of partnerships and grouping. Flows of financial services across the banking border will accelerate, partly due to deregulated sales of banking products by agents.
2. The second topic is new business developments based on the diversification of income sources, including enhancement of fee business. Conventional business models depending on cash revenues centered on deposits and loans are reaching their limits. It is essential to make the transition with a new view to such business models, as oriented to individual customer segments.
Large companies are seeking advice as to their overall fundraising instruments and business strategies. To meet their needs, banks are chiefly offering business models of risk-mediation types based on investment-trust approaches. Syndicated loans taking advantage of resolution, process, and dispersion of their risks are also making progress.
Meanwhile, new unsecured loan products based on cash flow and scoring are growing for middle-standing companies as well as for small and medium-sized companies.
For retail distributors and individuals, housing loans are significantly increasing and over-the-counter sales of investment trusts and insurance products are also expanding considerably.
Banks’ issuance of their own credit cards and partnerships with consumer financing companies are also getting widespread. Household financial assets, of which bank deposits and postal savings constitute the major part, provide big business chances for banks.
From the standpoint of consumer protection, it is important for banks to address aggravated financial crimes. Although banks’ business models change in response to changes in customer needs, banks will make every effort by all means to defend the basics of customer-driven management.
“Attractiveness of Crystal Glass”
Mr. Yozo Izuhara,
Chairman and CEO of Nippon Sheet Glass Co., Ltd.
“Crystal” in English means “Kessho”, and “krystallos” in Greek also stands for crystal with a high degree of transparency. As a matter of fact, “crystal glass” is not crystal. It is generally “crystal oxide” containing load oxide.
The history of crystal glass traces back to the 15th century, in which Venetians produced transparent Venetian glass like berg crystal by the addition of manganese oxide to opaque glass, which was the first generation of crystal glass. In the 17th century, transparent glass with a high refractive index was acquired in Bohemia, using wood ash containing a great deal of potassium oxide, which was the second generation of crystal glass.
At the end of the 17th century, crystal oxide was developed using load oxide in England, where wood ash was hardly available. Crystal oxide with a higher refractive index increased brightness, which was the third generation of crystal glass, the same as the current one.
Full-scale development of glass technology took place in Japan only at the closing stage of the Edo Period. European glass technology spread nationwide from Nagasaki. In about 1830, Edo cut glass emerged in the capital. Edo cut-design on glass with a tinge of yellow was an artistic beauty. A little later Satsuma cut glass appeared and it was featured by glass with a tinge of red.
Crystal glass contains load oxide, accounting for more than 24 percent of its weight. The higher its content of load oxide, the brighter and the heavier it looks. Fully stained glass is very few. Stained glass is often made by clothing transparent glass with colored glass. Many metals are used to stain glass in red color. High-grade, red-color glass is produced using gold. Processes of cut and engraving (gravure in French) are sometimes mechanized, but in most cases professional craftsmen make cuts and engravings by hand, using their high skills. Manually-engraved edges have a sharp taste.
Drinking wine poured into a high-quality crystal glass gives an excellent taste. I hope all of you will enjoy yourselves using crystal glass in your daily lives.