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TheNippon Kangyo Bank orHypothec Bank of Japan (Japanese:日本勧業銀行) (HBJ) was a major Japanese bank headquartered inTokyo, established in 1897 as the first of a string of policy institutions ("special banks") that subsequently includedBank of Taiwan (est. 1899),Hokkaido Takushoku Bank (est. 1900), andIndustrial Bank of Japan (est. 1902), with the aim to promote agriculture and industrial development by providing mortgage ("hypothecary") loans.[3]: 16
In 1971, Nippon Kangyo Bank merged withDai-Ichi Bank to form theDai-Ichi Kangyo Bank, subsequently Japan's largest bank and a predecessor toMizuho Financial Group.
Nippon Kangyo Bank was founded in 1897 as a governmental institution providing long-termlight industrial andagriculturalloans under theNippon Kangyo Bank Act of 1896. TheIndustrial Bank of Japan was also founded in 1902, providing long-termheavy industrial loans. Nippon Kangyo Bank had offices only inTokyo andOsaka, leaving nationwide local services in the charge of itssubsidiaries known asNoko Bank (lit. Agricultural and Industrial Bank). A Noko Bank was established in each of theprefectures of Japan, except forHokkaidō where a similar role was played byHokkaido Takushoku Bank.
In order to provide long-term loans, the bank's source of funds was notdeposits butsecurities. The bank was also authorized to issue premium-bearingdebentures. The bank financed, however, landlords and partnerships, and there were little money to go around individual farmers. In 1911 theNippon Kangyo Bank act was amended so that Nippon Kangyo Bank could handle deposit accounts and offer short-term finance. In the latter ofTaishō period the bank embarked onreal estateinvestments, while Noko Banks were absorbed into Nippon Kangyo Bank one after another. The bank dramatically increased its scale of operations.
DuringWorld War II, Nippon Kangyo Bank was the lead management underwriter ofwar bonds for Japanese government. In reality, the war bond by Nippon Kangyo Bank was a lottery rather than a bond. Today's Japanese lottery (takarakuji) has its origin in this war bond.
Following World War II the Nippon Kangyo Bank, like theIndustrial Bank of Japan, lost its earlier status as semi-public bank by being privatized in 1950, following a recommendation from Supreme Commander of the Allied Powers GeneralDouglas MacArthur.[4] It thus became a commercial bank following theNippon Kangyo Bank Repeal Act of 1950. The long-term banking division of Nippon Kangyo Bank was transferred to newly establishedLong-Term Credit Bank of Japan. The bank became popular among the public with the new rose logo, mascot named Nobara-chan (lit. Rose-chan) andadvertising slogan "Rose's HBJ" (「ばらの勧銀」,Bara no Kangin).
