Overview of Leading Banks in Japan
Japan hosts one of the world’s largest banking systems, operating much like financial institutions in other nations. The commercial banking sector is a fundamental component of Japan’s financial landscape. In 1990, five Japanese banks were ranked among the world’s largest by total assets.
Established in 1885, the Bank of Japan acts as the nation’s central bank, responsible for issuing currency and maintaining financial stability. It is recognized as the first central bank among G7 nations to hold assets exceeding the size of the country’s entire economy.
The Japanese banking sector includes:
- 10 major banks
- 64 regional banks affiliated with the first association
- 41 regional banks affiliated with the second association
- 253 shinkin banks holding accounts with the Bank of Japan
Moody’s 2018 outlook for Japan’s financial institutions—including banks, insurance companies, and finance firms—is stable. The Bank of Japan has noted a gradual decline in the core capital ratios of domestic banks. The sector is adapting to demographic shifts and increasing online banking by investing heavily in financial technology while scaling back on physical branches and staff.
Top 10 Banks in Japan
Below is a summary of the top 10 banks in Japan with key highlights:
1. Mitsubishi UFJ Financial Group (MUFG)
- The largest financial group in Japan, founded in 1880.
- Branches across Japan and presence in 40 countries worldwide.
- Gross profit declined to 1,882.5 billion yen in the first half of fiscal year ending March 2019.
- Provides retail, commercial, corporate, investment banking, and SME financial services.
- Honored as “Most Honoured Company” by a leading institutional investors’ publication.
2. Japan Post Bank
- The largest bank by deposits and second-largest by total assets.
- Part of Japan Post Holdings since 2007.
- Offers deposit accounts, lending, security investments, and government bonds.
- Operates 24,019 outlets and 28,782 ATMs as of March 2018.
- Gross operating profit fell by 142.2 billion yen in 2018.
3. Mizuho Financial Group
- Founded in 2003, ranking among the world’s largest financial institutions.
- Services include banking, securities, trust management, private banking, and venture capital.
- Reported net profit of 409.9 billion yen in Q3 2018.
- Maintains 900 offices and employs 60,000 staff globally.
- Recipient of the 2018 Asian Banker Transaction Award.
4. Sumitomo Mitsui Financial Group (SMFG)
- Formed in 2001 by merging two banks.
- Recognized as a leading bank for foreign clients in Japan.
- Capital stock totals 2,338.7 billion yen.
- Provides commercial banking, leasing, securities, and consumer finance.
- Operates 18 main branches and 22 sub-branches as of 2018.
- 2018 profits were slightly below those of 2017.
5. Norinchukin Bank
- A cooperative bank supporting Japan’s agriculture, fisheries, and forestry sectors.
- Established in 1923.
- Consolidated profit for the first nine months of 2018 was 89.9 billion yen, down from 2017.
- Maintains 3 overseas offices and 2 representative offices.
- Total assets reached approximately 104.9 trillion yen as of March 2018.
6. Resona Holdings
- Founded in 1918 with a capital of 50.4 billion yen as of March 2018.
- Operating profit in the first nine months of 2018 was 469.4 billion yen, down 4.3% year-on-year.
- Operates 834 branches nationwide.
- Offers banking, trust, credit guarantee, and receivables collection services.
7. Concordia Financial Group
- Established in 2016 through the merger of two banks.
- Capital stock of 150 billion yen.
- Parent company of Bank of Yokohama and Higashi-Nippon Bank.
- Gross operating income fell 6.2%, net profit declined 15.2% in 2018.
- Operates branches domestically and internationally.
8. Fukuoka Financial Group
- Founded in 2007.
- Reported ordinary income of 179.8 billion yen and ordinary profit of 542.4 billion yen in 2018.
- Offers deposit accounts, loans, foreign exchange, guarantees, and loan management.
- Has 328 branches and 8 international offices across Asia.
9. Chiba Bank
- Established in 1943 with total assets of 14.6 trillion yen.
- Operates 182 branches, 49,053 ATMs, and 3 currency exchange counters.
- Maintains 3 overseas branches and 3 representative offices.
- Ordinary income and profit were lower in 2018 compared to 2017.
- Provides deposits, loans, bill discounting, securities, leasing, and credit card services.
10. Hokuhoku Financial Group
- Founded in 2003.
- Ordinary income and profit declined in 2018 compared to the previous year.
- Operates 179 branches in Japan and 9 offices overseas.
- Capital stock of 70.9 billion yen, rated A by R&I.
- Provides deposit, loan, and other financial services.
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