MUFG Bank

Last updated

MUFG Bank, Ltd.
株式会社三菱UFJ銀行
TypeSubsidiary of Mitsubishi UFJ Financial Group
Industry Financial services
PredecessorThe Bank of Tokyo-Mitsubishi, Ltd.
UFJ Bank
FoundedJanuary 1, 2006
(The Mitsubishi Bank, Ltd.: August 25, 1919)
(The Sanwa Bank, Ltd.: 1933)
(The Tokai Bank, Ltd.: 1941)
Headquarters
Chiyoda, Tokyo (Marunouchi 2-7-1, Chiyoda-ku, Tokyo, 100-8388, Japan)
,
Japan
Number of locations
868 branches (as of March 31, 2009)
Area served
Worldwide
Key people
Katsunori Nagayasu, (president)
Services Personal banking
Corporate banking
Investment banking
RevenueIncrease2.svgUS$49.17bn (2016)
Decrease2.svg ¥103.8bn (2009)
Increase2.svgUS$8.15bn (2016)
Total assets Increase2.svgUS$2,589.76bn (2016)
Total equity Decrease2.svg ¥6.857 trillion (as of March 31, 2009)
Number of employees
Increase2.svg10,936 ( 2016)
Parent Mitsubishi UFJ Financial Group, Inc.
Subsidiaries UnionBanCal Corporation
Senshu Ikeda Holdings, Inc.
kabu.com Securities Co., Ltd.
Bank of Ayudhya Pub Co., Ltd.
Website www.bk.mufg.jp/english/
Head Office in Marunouchi, Tokyo, Japan (former Mitsubishi Bank headquarters) Bank of Tokyo-Mitsubishi UFJ (head office).jpg
Head Office in Marunouchi, Tokyo, Japan (former Mitsubishi Bank headquarters)
Nihombashi Branch in Tokyo (former Bank of Tokyo headquarters) Bank of Tokyo-Mitsubishi UFJ (Nihonbashi branch).jpg
Nihombashi Branch in Tokyo (former Bank of Tokyo headquarters)

MUFG Bank, Ltd. (株式会社三菱UFJ銀行, Kabushiki Gaisha Mitsubishi Yū-efu-jē Ginkō) is the largest bank in Japan. It was established on January 1, 2006, following the merger of the Bank of Tokyo-Mitsubishi, Ltd. and UFJ Bank Ltd. MUFG is one of the three so-called Japanese "megabanks" (along with SMBC and Mizuho). As such, it is considered a systemically important bank by the Financial Stability Board.

Contents

The bank serves as the core retail, corporate, and investment banking arm of the Mitsubishi UFJ Financial Group. [1] Its traditional client base is made up of Japanese corporates, but overseas corporate lending increased 35% in the nine months to December 31, 2011. [2]

As of June 23, 2019, Mitsubishi UFJ Financial Group / MUFG Bank was ranked as the largest bank in Japan and the fourth largest in the world. [3]

The bank's head office is in Marunouchi, Chiyoda, Tokyo, and it has 772 other offices in Japan and 76 offices overseas. [4]

History

Formation

MUFG Bank is the product of three bank mergers that occurred between 1996 and 2006.

Mitsubishi Bank was founded in 1880 by a former samurai, Iwasaki Yatarō, and was a core member of the Mitsubishi Group of companies. It merged with The Bank of Tokyo in 1996 to form The Bank of Tokyo-Mitsubishi, Ltd. (株式会社東京三菱銀行, Kabushiki kaisha tōkyō mitsubishi ginkō), which at that point was the world's largest bank in terms of total assets. [5] In 1998, upon merger of the then second and third largest Swiss banks, Union Bank of Switzerland and Swiss Bank Corporation, the newly created UBS AG became the second largest in the world at the time, behind only the Bank of Tokyo-Mitsubishi. [6] The Bank of Tokyo had historically focused on foreign exchange business since its foundation as the Yokohama Specie Bank in 1880, while Mitsubishi had had a stronger focus on domestic corporate and retail banking. Both banks were relatively healthy in the wake of the Japanese asset price bubble. [7]

Until the Tokyo-Mitsubishi merger took place in 1996, Sanwa Bank, which was based in Osaka and was the anchor of the Sanwa Group keiretsu, had been considered the strongest bank in Japan, and it had aimed to be the world's largest bank during the "bubble era". [7] By 2000, however, Sanwa was the fourth largest bank in Japan. It entered into merger talks with two other large banks, Asahi Bank and Tokai Bank, to create the world's third-largest bank by assets. Asahi (now part of Resona Holdings) pulled out of these talks later that year. [8] By 2001, The Toyo Trust & Banking Co. had been added to the merger group and the combined company was to be called United Financial Holdings of Japan. [9] The merger was completed in 2002 and the new bank was officially named UFJ Bank Ltd. (株式会社ユーエフジェイ銀行, Kabushiki kaisha yūefujei ginkō). [10] UFJ was headquartered in Nagoya, the historical headquarters of Tokai Bank. During its short life, it was plagued by bad debt problems and by infighting between the employees of its predecessor companies.

The holding companies of BTM and UFJ agreed to merge in 2005, forming Japan's largest bank by assets and market capitalization. This led to litigation between BTM and Sumitomo Trust & Banking Co., which had previously agreed to an alliance with UFJ under which it would take over UFJ's trust banking operations. BTM and UFJ settled their dispute for 2.5 billion yen in late 2006. [11] The merger of the two bank holding companies was completed on October 1, 2005, creating the Mitsubishi UFJ Financial Group. The core banking units of MTFG and UFJ Holdings, the Bank of Tokyo-Mitsubishi, Ltd. and UFJ Bank Ltd., respectively, continued to operate separately until January 1, 2006, when the two units combined to form The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) [10]

Post-merger operations

Mitsubishi Bank and the Bank of Tokyo each had significant banking subsidiaries in California (Bank of California and Union Bank respectively) before their merger. At the time of the merger, these U.S. banks also merged to form UnionBanCal Corporation. BTM listed UnionBanCal on the New York Stock Exchange in 1999. In 2008, BTMU purchased all of the outstanding shares of UnionBanCal. BTMU moved its New York-based banking operations to Union Bank and renamed the company MUFG Union Bank in 2014.

BTMU was investigated by New York banking regulators over its role in routing payments for Iranian customers through its New York branch in violation of U.S. sanctions. BTMU settled with the state for $250 million in 2013. A second settlement was reached for $315 million in 2014 after it was found that PricewaterhouseCoopers had altered an investigation report on the issue; PwC itself was fined $25 million in relation to the matter. [12]

On April 1, 2018, the bank was renamed to MUFG Bank Ltd. (三菱UFJ銀行, Mitsubishi UFJ Ginkō). This name change aligned the bank name with the holding company name, Mitsubishi UFJ Financial Group (MUFG), removing "Tokyo" from the name. [13] [14]

Holdings

Related Research Articles

Mitsubishi Group of autonomous, Japanese multinational companies

The Mitsubishi Group is a group of autonomous Japanese multinational companies in a variety of industries.

Mitsubishi Bank

The Mitsubishi Bank, Ltd. was a major Japanese bank that served as the main bank for the Mitsubishi conglomerate/keiretsu. It merged with The Bank of Tokyo in 1996 to form The Bank of Tokyo-Mitsubishi.

UFJ, which stands for the United Financial of Japan, is used in the former companies of UFJ Bank, UFJ Group, and UFJ Holdings. These related institutions disappeared after the merger of The Bank of Tokyo-Mitsubishi, and UFJ Bank in 2005. UFJ Bank itself was established by the merger in 2002 of the Sanwa Bank, Tokai Bank, and Toyo Trust and Banking.

The Master Trust Bank of Japan Japanese trust bank

The Master Trust Bank of Japan, Ltd. is a trust bank in Japan. It was founded in 2000 and claims to be the first trust bank in Japan to be exclusively engaged in asset administration business.

Mitsubishi Estate Co., Ltd. is one of the largest real-estate developers in Japan and is involved in property management and architecture research and design.

Mitsubishi UFJ Financial Group Japanese bank holding and financial services company

Mitsubishi UFJ Financial Group, Inc. is a Japanese bank holding and financial services company headquartered in Chiyoda, Tokyo, Japan.

Resona Holdings Japanese holding company of Resona Group

Resona Holdings, Inc. is the holding company of Resona Group, the fifth-largest banking group in Japan as of 2012. It is headquartered in the Kiba area of Koto, Tokyo. The main operating entities of the group are Resona Bank, a nationwide corporate and retail bank headquartered in Osaka, and Saitama Resona Bank, a smaller bank headquartered in Saitama City which primarily serves Saitama Prefecture. Most of these banks' operations are descended from Daiwa Bank and Asahi Bank, which merged in 2003.

The Sanwa Bank, Limited was a major Japanese bank headquartered in Osaka, which operated from 1933 to 2002. It merged with Tokai Bank to form UFJ Bank. In the 1990s, it was the most profitable bank in the world, and second-largest in terms of assets behind its eventual merger partner Tokyo-Mitsubishi.

Mitsubishi UFJ Trust and Banking Corporation is the trust banking arm of the Mitsubishi UFJ Financial Group, a Japanese financial services group which is the largest in the world measured by assets. The bank is headquartered in Tokyo, Japan.

Mitsubishi UFJ Securities Co., Ltd. is the investment banking arm of the Mitsubishi UFJ Financial Group (MUFG), a financial services company which is the largest in Japan measured by assets. The company's headquarters are in Tokyo, Japan.

Security Bank Corporation (SBC) is a universal bank in the Philippines. It was established on June 18, 1951 as Security Bank and Trust Company and was the first private and Filipino-controlled bank of the post-World War II period.

Mitsubishi UFJ Securities International

Mitsubishi UFJ Securities International plc (MUSI) was a global investment bank headquartered in London, United Kingdom.

MUFG Union Bank is an American full-service bank with 398 branches in California, Washington and Oregon which is wholly owned by MUFG Bank. The bank, formerly known as Union Bank of California, N.A., has operations in California, Washington and also has commercial branches in Dallas, Houston, New York City and Chicago, as well as two international offices. Headquartered in New York City, MUFG Union Bank, N.A. is a subsidiary of holding company MUFG Americas Holdings Corporation and a member of the Mitsubishi UFJ Financial Group.

The Sanwa Group was a leading Japanese keiretsu, based in Osaka, between World War II and the Japanese asset price bubble in the early 1990s. It remains in existence as a jointly held company called Midori-kai (みどり会).

Shizuoka Bank Japanese regional bank

The Shizuoka Bank Ltd. is a Japanese regional bank headquartered in Shizuoka, Shizuoka Prefecture. One of the largest regional banks in Japan, it has over 190 domestic branches, primarily concentrated in the Tokai region between Tokyo and Osaka and overseas offices in Los Angeles, New York, Brussels, Hong Kong, Shanghai, and Singapore.

Bank of Ayudhya

Bank of Ayudhya Public Company Limited, branded and commonly referred to as Krungsri, is the fifth largest bank in Thailand in terms of assets, loans, and deposits. Through its branches and service outlets in Thailand and abroad, the company provides banking, consumer finance, investment, asset management, and other financial products and services to small and medium enterprises, large corporations and individual customers.

Mitsubishi Research Institute

Mitsubishi Research Institute, Inc., often called MRI, was established at the centennial anniversary of Japan's Mitsubishi Group in 1970, invested by the various companies of the group, and is a Think tank, representative of Japan. It is the consulting firm of Mitsubishi Group and now employs about 900 people.

The Bank of Tokyo

The Bank of Tokyo, Ltd. was a Japanese foreign exchange bank that operated from 1946 to 1996. In January 1996, it merged with Mitsubishi Bank to form The Bank of Tokyo-Mitsubishi. Its headquarters was in the Nihonbashi district of Tokyo, adjacent to the Bank of Japan.

Sumitomo Mitsui Trust Holdings, Inc., formerly Chuo Mitsui Trust Holdings, Inc., is a Japanese financial holding company headquartered in Chiyoda, Tokyo. It provides an assortment of financial products to retail and wholesale customers, with a focus on asset management, financial brokerage and real estate services.

References

  1. "Products and Services: Corporate & Investment Banking". bk.mufg.jp. The Bank of Tokyo-Mitsubishi UFJ. Archived from the original on February 22, 2015. Retrieved February 22, 2015.
  2. "Foreign exchange: BTMU Throws Off the Curse of the Zombie Bank". Euromoney. Archived from the original on April 5, 2016. Retrieved February 25, 2013.
  3. "The 10 Largest Banks in the World". 2019. Archived from the original on July 12, 2019. Retrieved August 12, 2019.
  4. "About The Bank of Tokyo-Mitsubishi UFJ, Ltd. Archived February 10, 2010, at the Wayback Machine " The Bank of Tokyo-Mitsubishi UFJ. Retrieved December 15, 2009.
  5. Associated Press (April 1, 1996). "Bank of Tokyo-Mitsubishi Opens for Business as World's Biggest". Deseret News. Retrieved April 12, 2011.
  6. 2 of the Big 3 Swiss Banks To Join to Seek Global Heft Archived October 27, 2017, at the Wayback Machine . The New York Times, December 9, 1997
  7. 1 2 "Bank of Tokyo-Mitsubishi Ltd. History". International Directory of Company Histories, Vol. 15. St. James Press, 1996. Archived from the original on April 15, 2015. Retrieved April 9, 2015.
  8. Dvorak, Phred (June 16, 2000). "Asahi Exits Three-Way Bank Deal, Leaving Sanwa, Tokai to Clean Up". The Wall Street Journal. Archived from the original on April 16, 2015. Retrieved April 9, 2015.
  9. Kennedy, Sam (June 28, 2001). "Sanwa, Tokai to Merge Under New Name". Los Angeles Times. Archived from the original on April 18, 2015. Retrieved April 9, 2015.
  10. 1 2 "The Origins of Our Bank". The Bank of Tokyo-Mitsubishi UFJ. Archived from the original on March 13, 2015. Retrieved April 9, 2015.
  11. "Mitsubishi UFJ, Sumitomo Trust settle merger row". Japan Times. Associated Press. November 22, 2006. Retrieved April 9, 2015.
  12. "Bank of Tokyo Fined for 'Misleading' New York Regulator on Iran". New York Times DealBook. November 18, 2014. Archived from the original on April 16, 2015. Retrieved April 10, 2015.
  13. "東銀DNA「海外」残るか 「東京」消え「三菱UFJ」へ". May 16, 2017. Archived from the original on October 30, 2017. Retrieved February 5, 2018.
  14. "'MUFG Bank' is the New Global Brand for MUFG's Core Commercial Banking Subsidiary" (PDF). MUFG.jp. Mitsubishi UFJ Financial Group, Inc. / MUFG Bank, Ltd. Archived (PDF) from the original on July 1, 2018. Retrieved June 30, 2018.
  15. "Fed give OK to Mitsubishi, Morgan Stanley deal". Reuters. October 6, 2008. Archived from the original on July 26, 2012. Retrieved April 14, 2012.
  16. "Mitsubishi UFJ buys 21% stake in Morgan Stanley". USA Today. October 13, 2008. Archived from the original on February 20, 2011. Retrieved April 14, 2012.
  17. "Morgan Stanley hangs on Mitsubishi's $9bn pledge". The Guardian. October 11, 2008. Archived from the original on January 29, 2015. Retrieved April 14, 2012.
  18. "Mitsubishi UFJ Mulls Multi-Billion Dollar U.S. Bank Acquisition". Bloomberg. April 2, 2012. Archived from the original on April 3, 2012. Retrieved April 14, 2012.
  19. "Mitsubishi UFJ Financial Group to Invest $9 Billion in Morgan Stanley". Morgan Stanley. September 29, 2008. Archived from the original on April 4, 2020. Retrieved October 14, 2020.
  20. Andrew Ross Sorkin (2009). Too Big to Fail . Viking. pp. 517–18.
  21. "Behold: The $9 Billion Check That Rescued Morgan Stanley". Business Insider. November 20, 2009. Archived from the original on August 31, 2020. Retrieved October 14, 2020.
  22. Morgan Stanley (September 16, 2020). "Episode 04: Surviving the Crisis". Timestamp 14:23: YouTube. Retrieved October 14, 2020.CS1 maint: location (link)
  23. "Stock Information for Bank of Ayudhya PCL". settrade.com. Archived from the original on December 1, 2017. Retrieved November 24, 2017.

Commons-logo.svg Media related to Bank of Tokyo-Mitsubishi UFJ at Wikimedia Commons