Start of New Lending Initiatives Utilizing 'Corporate Value Collateral Rights'

Yokohama Shinkin Bank (Head office: Naka-ku, Yokohama; Chairman: Takashi Kasuga), in accordance with the intent of the 'Act on Promotion of Business-Oriented Lending' (hereinafter: the Promotion Act) effective May 25, 2026, has begun offering business loans utilizing 'Corporate Value Collateral Rights.' This program offers a new option for loans based on the future potential of a business, deeply understanding the 'value of the business itself'—such as technology, know-how, and future potential—without being bound by real estate collateral or management guarantees.

1. Overview and Features of Corporate Value Collateral Rights

(1) Collateralization of Total Assets
Total assets, including assets acquired by the company in the future, serve as the collateral property.

(2) Applicable to Companies Defined by the Companies Act
Stock companies, limited companies, general partnerships, limited partnerships, and limited liability companies are eligible.

(3) Adoption of Trust Schemes
A trust scheme involving a settlor, trustee, and beneficiary is constructed to ensure strict and fair management and operation.

(4) Transparency Through Commercial Registration
Use of this system requires registration in the commercial register.

(5) Restrictions on Acts Outside Normal Business Activities
Prior consent from the trustee is required for the disposal of important property.

(6) Implementation of Corporate Decisions
Setting up Corporate Value Collateral Rights requires appropriate internal procedures, such as board of directors' resolutions as stipulated by the Companies Act.

(7) Monetization Through Business Transfer, etc.
Should the Corporate Value Collateral Rights be executed, monetization through business transfer or similar methods will be considered.

* Screening is required to utilize Corporate Value Collateral Rights.

2. Basic Policy of the Bank

Based on the basic philosophy stipulated in the Promotion Act, the Bank will operate its business according to the following basic policies:

(1) Thorough evaluation of business potential
(2) Promotion of lending that does not depend on management guarantees
(3) Practice of dialogue and accompaniment-type support
(4) Maintenance and improvement of business value

The Bank will continue to build close relationships of trust with regional business operators and contribute to the development of the regional economy.