4. Challenges facing our global banking business
SMBC generally took two different approaches in the global business, differentiated by geographical area: one for Asia and the other for the United States, Europe and other regions. In Asia, where the nature of markets largely varied by country, offices were opened in each country to independently engage only in its local operations. In contrast, for the United States and Europe, where economic integration had substantially progressed, the Americas Division and the Europe, Middle East and Africa (EMEA) Division were set up, under each of which functions were organized by customer and product category and the divisions were responsible for the entire region. The consolidation of overseas office networks was completed in 2001 in two steps, first in regions excluding China on April 2, then in China on July 2. As a result, the number of offices outside of Japan decreased by 12 to 21 after the merger of the banks from the previous combined total of 33.
In its earliest days, the International Banking Unit was faced by a challenging business environment while striving to significantly reduce risk weighted assets according to rehabilitation plans. In this context, while working hard to remain profitable, the International Banking Unit was downsized. Also, overseas operations diminished to help create an effective integration as early as possible.
In March 2003, SMBC established Sumitomo Mitsui Banking Corporation Europe Limited in London and started operations there. The creation of the new entity entailed costs. On the other hand, taking advantage of serving the single, highly integrated market created by the European Union (EU), SMBC expanded its office networks as well as promoting efficient and consistent operations across the region.
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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