Choosing a Japanese Bank for Your Company
Japan is the second largest economy and the third leading financial country in the world. That is why more foreign investors venture and expand in Japan. The need for trustworthy bank is very important for these foreign companies. The banking system of Japan can be classified into three sectors. Each sector follows a strategy and work module for the specific needs of each client.
First is the Central Bank of Japan, then the three Megabanks of Japan, and the Money Center Banks. The Central Bank has a big influence on the economy of the country and it gives its clients absolute freedom. The three Megabanks of Japan focuses more on Internet or online banking. The money center banks are regional banks for different regions in the country. These are your options in choosing a Japanese bank for your company. Make sure that the bank you choose is appropriate for the needs of your bank.
For a better definition of the banks, it is best to take a deeper look at each of the categories of the Japanese banks:
1. The Central Bank of Japan. This is also called “Nichigan”. Its headquarters can be found in Chuo, Tokyo. Dating back to the Meiji Restoration when Yen became the country’s currency, it became operational in 1882. In the present, it is still the strongest foundations of the Japanese economy after 128 years. During 1942, it was re-established. However, it faced closure during the war. Fortunately, it regained its operations during 1949. Now, it plays a very important role in the Japanese economy.
2. The Megabanks. The megabank is composed of three giant institutions namely the Mizuho Financial group, the Mitsubishi UFJ Financial Group and the Sumitomo Mitsui Financial Group. The Mizuho Bank is the third most profitable bank of Japan and ninth in the global market capitalization with $1.44 trillion worth of assets. With 68,000 employees from 30 countries all over the world, it is the 59th biggest financial hub in the world. Mitsubishi UFJ Financial Group on the other hand has a higher asset count with an estimated $2.4 trillion worth of assets. As a part of the Mitsubishi industry, it gets phenomenal response around the world, placing it on the second rank of the largest banking industry in the world.
3. Major Money Center Banks. These are the Resona Holdings, Sumito Trust and Mitsui Trust holdings.
4. Banks online and regional banks. Banks with subsidiaries online are Sumito, Sony Financial Holdings, and 7-Eleven Holdings. They serve their clients through digital banking online. Aichi Bank, Akita Bank and Aomori Bank are on the top lists of regional banks to who needs to access urban banking.