Sumitomo Mitsui Financial Group, Inc.
Sumitomo Mitsui Banking Corporation
Organizational Revision of SMFG and SMBC
<Organizational Revision of SMFG>
Establishment of Group CS Committee
SMFG will newly establish a Group CS Committee in order to further improve customer satisfaction on a group basis.
<Organizational Revision of SMBC>
The purpose of the organizational revision is to accelerate business development in focal areas and further strengthen internal control.
The new organizational structure will enable SMBC to meet the needs of corporate and individual customers, including business owners and employees of corporate customers, and satisfy the diversifying financial requirements of growth companies.
Regarding internal control, overseas compliance system will be strengthened further, including anti-money laundering measures.
The details of the organizational revision of SMBC are as follows:
1. Revision of Business Development Framework
(1) Establishment of Private Advisory Dept.
In order to meet a wider range of customer needs from consumer banking to corporate banking, SMBC will establish a Private Advisory Dept. (PAD) which will span three business units: the Consumer Banking Unit, Middle Market Banking Unit and Corporate Banking Unit.
The PAD will supervise the Private Banking Dept., Life Planning Service Dept. – in charge of corporate employee customers and to be renamed Corporate Employees Business Dept.– and a newly established Succession Business Dept.
(2) Consumer Banking Business
In order to meet a wide range of customer needs according to their stage of life through a financial consulting approach, SMBC will newly establish a Financial Consulting R&D Dept. within the Financial Consulting Dept. The Financial Consulting R&D Dept. will be in charge of developing new cross-category products and services covering asset management, financing, settlement finance, etc.
At the same time, SMBC will integrate the Card Loan Dept. into the Mass Retail Dept. to streamline its organization.
(3) Corporate Banking Business
(a) Public and Financial Institutions Banking Dept.
In order to further strengthen the banking business with public and financial institutions, SMBC has reviewed the function and responsibilities of the relevant departments, and decided to newly establish a Public and Financial Institutions Banking Dept. while dissolving the Public Institutions Banking Dept. The new department will be in charge of relationship management with local municipal entities and central government agencies. At the same time, the planning and promoting function related to banking business with regional financial institutions will be transferred from the Tokyo Corporate Banking Dept. VI to the new department.
Also, the Tokyo Public Institutions Business Office and the Kanagawa Public Institutions Business Office will be consolidated into a newly established Public Institutions Business Office.
(b) Small and Medium Enterprises Marketing Dept.
The Small and Medium Enterprises Business Promotion Dept. will be renamed Small and Medium Enterprises Marketing Dept., to which two of the functions of the Corporate Advisory Division will be transferred. The two functions are (a) industry marketing research and asset management consulting in specific fields such as medical facilities, schools, and religious institutions and (b) support of front offices in introducing new business partners to corporate customers.
(4) Investment Banking Business
(a) Merchant Banking Dept.
Given the diversifying financing needs of growth companies, SMBC will newly establish a Merchant Banking Dept. that will be in charge of nurturing growth companies through equity or other investments.
(b) Securities Direct Sales Dept.
There is a rising demand for asset management and SMBC will newly establish a Securities Direct Sales Dept. that will focus on direct sales of specific investment products to be sold under a separate organization in order to prevent sharing of insider information with other departments. In addition, SMBC will revise its framework to develop and sell new derivatives and investment products.
(c) Global Investors Services Dept.
In the light of the reform of the Japanese securities clearing and settlement system such as the dematerialization of stock certificates, SMBC will revise the role of the Global Investors Services Dept. to strengthen the securities financing business which is expected to grow further.
2. Revision of Internal Control System
(1) Strengthen Overseas Compliance System
In order to further strengthen its overseas
compliance system, SMBC will newly establish an International Compliance Dept. in the Compliance Unit and a Compliance Dept.,
The International Compliance Dept. will be in charge of planning the overall overseas compliance system as well as providing guidance and oversight to overseas branches on local compliance issues, while the Compliance Dept., Americas Division will be in charge of planning and executing the compliance system and program in the U.S., under the guidance and oversight of the International Compliance Dept.
(2) Centralization of Credit Related Risk
In order to establish a risk management system that will meet the diversifying financing needs of customers, SMBC has reviewed all the functions and responsibilities related to management of credit risk entailed in exposures from debt securities to equity investments. At the same time, SMBC has decided to introduce a new organizational structure that will enable it to execute full-scale active portfolio management, thereby improving the capital efficiency of its credit portfolio.
Specifically, SMBC will reorganize the Credit Planning Dept. and the Credit Risk Management Dept., consolidating the departments into a newly established Credit & Investment Planning Dept. In addition, SMBC will establish a CPM Dept. (*) within the Credit & Investment Planning Dept.
(*) Credit Portfolio Management