Banking
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.
First Steps To Banking In Japan
So its come to that critical moment in your stay in Japan were you finally need a bank account, be it for a new job or simply to have funds sent from back home to further your travel in the land of the rising sun.
I shall try to help make this process as smooth as possible for you by listing some helpful tips and information. So let’s get right to it shall we.
Step 1 Choosing a bank: This step can either be breathtakingly simple or mind numbingly difficult, depending on how in depth you want to get into each banks differences. If interest rates, currency exchange, credit and loan options, mortgage rates and all the other banking banky things that banks do matter to you theｎ it’s going to require some checking on your part. However if simple having a building in which your money is some how magically stored in between spending sprees you can simply walk in off the street (assuming you meet the criteria in step 2) and get the ball rolling.
Step 2 Opening the account: Things you will need, an alien registration card, depending on the bank perhaps also a Hanko (Japanese Signature Stamp) and presumably some money. Unless you speak Japanese fairly well it would be advisable to either find a bank that caters to English speakers (or any other language for that matter) or take someone along with you to translate
Step 3 Accessing your money (the great ATM battle): So as you may already know, Japan is a country were cash is still by far the most common way to pay for things. Now this being the case you would assume that not only would cash machines be plentiful but you would be able to access them at anytime…Sadly this is not the case. Though there are more cash machines than there used to be (most convenience shops have them) though most of the ones you will find are only open at times the logic of which will escape even the most warped of minds. The only reason I can think of to stop ATMs from working from around 21:00-00:00 is to stop drunk salarymen spending all their money in hostess bars. Convenience shops are your best bet; they are open 24/7 and can be found almost everywhere. You should check that your bankcard can be used in the conbini closest to you.
Step 4 When leaving Japan: It is possible that when leaving Japan your bank will want you to close the account. Of course it’s entirely up to you if you tell them or not. If you chose not to, then perhaps It might be a good idea to ask a friend if you can use their address to receive mail from the bank while you are out of the country.