As a result, Japanese banks are forming tie-up with local lenders and expanding their own operations to strike loan deals in those two countries, as we as others in the region. Japan's Japan's second-largest bank by market capitalization, said its banking unit plans to increase its staffing in Malaysia to about 100 employees from 30 last spring. It also hopes to add to its employees in Indonesia, currently at about 200.
TOKYO—While most of Japan Inc. is focused on expanding its reach in China, cash-rich Japanese banks are now actively scouring opportunities in two of the region's fastest-growing economies: Indonesia and Malaysia.
Japanese firms are looking to the new markets partly to allocate risk more broadly in Asia. Though China is still a prized market, regulatory hurdles and the presence of strong local lenders have made it difficult for foreign financial institutions to ramp up their business there.
Business tie-ups are also seen as attractive. Mizuho last year formed a business alliance with Indonesia Eximbank and Bhd., also known as Maybank, in businesses such as trade finance and infrastructure-related project finance. SMFG strengthened its ties with Malaysia's RHB Capital Bhd. in December. It formed an alliance with Indonesia's PT Bank Central Asia in 2009.
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