The paper investigates the business strategies of shinkin banks, including the strategies for relationship managers of shinkin banks, branch strategies, product strategies, system strategies, etc. "Shinkin bank" is a partially credit-union-like institution which specializes in community banking and SME finance in Japan, however can collect deposits from non-member customers. The research is based on the categorical principal components analyses for a questionnaire survey we conducted to 272 shinkin banks in February 2006, in cooperation with the National Association of Shinkin Banks. By analyzing answers for 58 questions of 235 shinkin banks, we identified seven principal components, which include the "loan- and efficiency-oriented" strategy, the "centralized judgment for loan application" strategy, and others. Then we examine the relationship of the performance variables of shinkin banks as dependent variables and the seven strategies as independent variables by regression analyses. We found the growth of deposit balance and the growth of loan balance are positively affected by the loan- and efficiency-oriented strategy. The fact we showed is important for both shinkin banks and SMEs, because we believe the growth of shinkin banks arises from the prosperity of SMEs.