5. Preparing for the merger

In October 1999, Sumitomo Bank and Sakura Bank set up an integration strategy committee headed by the presidents of the two banks and started the necessary preparations. The committee decided on three essential policies: best practices, speed, and mutual trust. It was also decided that the core banking system for the new bank would be developed based on those used by Sumitomo Bank because they were relatively new compared with those used by Sakura Bank.

In April 2000, the two banks announced an agreement on the merger. The date of the merger was moved forward to April 1, 2001, which was one year ahead of the original plan. The company name was to be Sumitomo Mitsui Banking Corporation (SMBC), and the ratio of exchange of their common stock would be three to five between Sumitomo Bank and Sakura Bank. Also, the Hibiya Mitsui Building that housed Sakura Bank’s Tokyo main office would be registered for the new bank’s head office.