A visit to Bayonne Community Bank in October by representatives of prominent Japanese banks showed just how connected the world is.
Sponsored by the New Jersey League of Community Bankers, about 30 members from Japanese banks toured the Bayonne Community Bank headquarters on Avenue C in October, asking questions about operations.
James Silkensen, president of the NJLCB, said the Japanese bankers had asked to look over operations at several community banks, and that the league had selected BCB and others in order to give the delegation a view of operations in various communities – urban, suburban and rural.
“This is one stop in several to show how banks operate in this area,” he said.
Moving through each department of BCB, delegation members asked questions about record keeping, processing of loans and other aspects of bank business.
Since BCB operates in an urban environment within the New York City region, its operations may differ from banks in other towns outside the immediate vicinity of New York, Silkensen said.
The Japanese bankers are looking at regional banking – which they call “Shinkin” – to gauge how their own banking operations are handled, and to collect ideas here that they might bring back home to their own banks.
Representatives from Banshu Shinkin Bank, Tajima Shinkin Bank and others grilled local officials for several hours before moving on to their next stop in central New Jersey. Some of the questions involved how the bank handles loan applications, and how these are processed.
The idea is to show these regional bankers in Japan how community banks successfully compete against large national banks.
The Avenue C branch of BCB is also the corporate headquarters for BCB Bankcorp, where Donald Mindiak serves as president and chief executive officer. Staff members in each department guided the guests from Japan through the sometimes-complicated processes of urban banking.
Banking in Japan differs in some respects from American banking, as American banking officials learned elsewhere on the tour of the state.
For instance, mortgage terms in Japan often exceed 35 years, and often require a co-signer. Mortgage rates are also currently much lower in Japan than in the United States.
The New Jersey League of Community Bankers was founded in 1908 and represents about 72 community-based savings institutions and commercial banks throughout the state. The focus of the organization is to develop a consortium of financial institutions to provide for the development and operation of affordable housing and community development projects throughout New Jersey.