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Regional banks of Japan, China to team up

TOKYO - Tokyo Tomin Bank has signed a business partnership with two Chinese banks, Beijing City Commercial Bank and Dalian City Commercial Bank, in a move that will mark the first alliance of the countries' non-major financial institutions.

The partnership aims to help small- and mid-size Japanese companies extend their businesses into China. Tokyo Tomin Bank will introduce the Chinese banks to its client firms that are eyeing entry into the Beijing and Dalian areas.

The Chinese banks will provide information on local industrial development areas and advice on the necessary administrative procedures for local governments, among other things.

After the firms move into China, both banks will create accounts in their branches and offer financial services such as yuan-denominated loans and money transfers.

Tokyo Tomin Bank will receive employees of the Chinese banks as short-term workers and will pass on financial know-how in areas such as uncollateralized loans for smaller companies.

Although major Japanese banks are bolstering their financial support to Japanese firms entering China, "they tend to neglect small- and mid-size firms with yearly turnovers of only 1-3 billion yen [US$9-$27 million]," a Tokyo Tomin Bank official said.

(Asia Pulse/Nikkei)

Dec 12, 2003

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