Japan deal invites foreigners: Daiwa, Sumitomo seek to lure firms in effort to reshape business

Article Abstract:

The so-called 'Big Bang' deregulation of the Japanese financial services industry has stirred up a frenzy of activity among Japanese banks and securities firms all aimed at crossing over each other business. One notable example is Japan's second largest securities firm, Daiwa Securities Co., which is undergoing a restructuring that will result in a holding company that manages a number of financial services firms. Daiwa Securities has disclosed its plans to merge its securities-underwriting subsidiary with Sumitomo Bank. Both Daiwa and Sumitomo are inviting foreign finance firms to team up with the merger to take advantage of the newly opened Japanese financial services industry.

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Banking Regulation, Banking industry, Planning, Mergers, acquisitions and divestments, Banking law, Daiwa Securities Company Ltd., Sumitomo Bank Ltd. (Tokyo, Japan)

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Takefuji has room to soar

Article Abstract:

Japanese lending company Takefuji was formally registered as a blue chip stock in the Tokyo Stock Exchange. The firms' stocks were traded at 12,500 yen, 32% higher than its price on Dec 11, 1998. However, industry and investment analysts believe that the stocks are still undervalued considering the commercial performance and potentials of the firm. Takefuji practices unique lending policies based on cash flow or on the ability of clients to pay back their loans. The underestimation of its stocks was attributed to the poor public image of the company.

Japan, Consumer Lending, Securities issued, listed, Consumer Finance Institutions, Commercial finance companies, Consumer finance companies, Securities, Takefuji Corp.

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Orix gets a lift from reform program

Article Abstract:

Orix Corp's profits increased by taking advantage of Japan's efforts to deregulate its financial sector. Financial reforms allowed Orix to find a cheaper method of generating finances through the capital market as opposed to bank loans. The move, which required Orix to be honest about its bad debt problems, generated 749 billion yen, or around 19% of total funding, for the year closing March 1996. For the year ending March 31, 1997, funding from offering of shares is expected to generate 10% of pretax gains.

Finance, Orix Corp.

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