Study of development and reorganization of the credit business in local fishery cooperatives

Recently, mergers among the fishery cooperatives and their integrated business organizations are increasing rapidly, aiming at expanding or rationalizing their business operations and adjusting themselves to changes in the financial environment. However, we do not have confirmed criteria to evaluate these business organizations after reorganization. Thus, this study, taking the multiple aspects of the fishery cooperatives into account, applies the concept that they have three important functions: a 'trade association function', a 'surrogate government function' and a 'financial independence seeking function'. These concepts are used for evaluating their credit-related business operations and for reviewing trends concerning their reorganization. Judging from a survey on all local fishery cooperatives in the Oshima area (Japan) and two case studies, concerning the Matsumae-Sakura Fishery Cooperative and the Toi-Cho Fishery Cooperative, as typical cases, the importance of 'trade association function' factor and 'surrogate government function' factor as they relate to their credit business are generally declining. Meanwhile, the major characteristics of these organizations is changing and transforming into 'regional financial institution' or 'local agencies of government'. Given this situation, we can assume that the 'Sai-azuke-Tentai' policy that the credit federation of fishery cooperative associations in Hokkaido continues to follow, is no longer acceptable because it brings about a high-cost structure.