4. Deciding on the merger between Sumitomo Bank and Sakura Bank
In August 1999, Dai-Ichi Kangyo Bank, Fuji Bank, and the Industrial Bank of Japan announced a full merger, sending shock waves through the financial industry. The integration of these three banks implied that the created gigantic bank would have an overwhelming share of the domestic market. Also, by this merger, only a limited number of large financial institutions were left for a possible merger to pursue an expansion in asset volume. A selection for merger partner could significantly change the future trajectory of each financial institution.
On August 23, shortly after the three banks announced the merger plan, Yoshifumi Nishikawa, then president of Sumitomo Bank, and Akishige Okada, then president of Sakura Bank, had an unscheduled opportunity to get together, resulting in a meeting the following day to explore the possibility of a partnership. This was followed by a second meeting held on September 8 to engage in more detailed discussions on specific issues in consideration of the possibility of a full partnership and future integration. Sumitomo Bank and Sakura Bank signed a basic agreement on a full partnership and integration plan and held a joint press conference on October 14, 1999. The two banks made public their intent to execute the merger plan by April 2002 for full integration on an equal footing.
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Chapter 1The Financial Crisis and Realignment of the Financial Sector
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Chapter 2The Birth of SMBC and SMFG
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Chapter 3Initiatives Pursued by SMBC Banking Units in the Early Years
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Chapter 3Initiatives Pursued by SMBC Banking Units in the Early Years
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- Enhancing our retail consulting and payments & consumer finance businesses
- Enhancing corporate financial solutions
- Banking-Securities collaboration in the wholesale securities business
- Challenges facing our global banking business
- Actions by Treasury Unit in preparation for rising interest rates
- Integration of operating systems and administrative functions
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Chapter 4Embarking on Fresh Challenges Under New Leadership
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Chapter 4Embarking on Fresh Challenges Under New Leadership
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- Changes of leadership and the announcement of our new management policy
- Developing group business strategies
- Addressing antitrust issues
- Completing repayment of public funds
- LEAD THE VALUE
- Enhancing our retail financial consulting business
- Enhancing our corporate solution business
- Enhancing our investment banking business
- Global banking business turnaround
- Upgrading risk management in preparation for Basel II
- Development of human resources
- CSR activities
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Chapter 5SMFG’s Response to Global Economic and Financial Turmoil
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Chapter 6Preparing for the Next Decade
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Chapter 1Business Model Reform Under Challenging Business Conditions
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Chapter 1Business Model Reform Under Challenging Business Conditions
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- Our journey under new leadership (the second decade)
- Focusing on growth industries and businesses
- Reforming domestic business operations
- Promoting banking-securities collaboration in Wholesale Banking Unit
- Structural reform of our retail business
- Meeting the needs of an aging society
- Abenomics and Treasury Unit's nimble portfolio management
- Operating in a negative-interest-rate environment
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Chapter 2Enhancing Group Businesses
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Chapter 3Expanding Our Global Business
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Chapter 4Enhancing Corporate Infrastructure Under a New Governance Framework
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Chapter 4Enhancing Corporate Infrastructure Under a New Governance Framework
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- New leadership and enhancing corporate governance
- Introducing group-wide business units and CxO system
- Improving capital, asset, and cost efficiency
- Pursuing our cashless payment strategies
- Retail branch reorganization
- Customer-oriented business conduct
- Enhancing internal-control frameworks
- Valuing diversity and revision of our HR framework
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Chapter 5The Path for Our Future
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Chapter 6Opening a New Chapter in SMBC Group’s History