(10 August 2017 – Japan) Mizuho Financial Group is targeting foreign transaction banking to the tune of US$100 million, in a bid to boost international earnings as Japan’s banking sector battles with negative interest rates.
“We’re expanding with a focus on the cross-border transactions of non-Japanese corporations doing business in Asia,” Zenichi Tanakamaru, a senior vice president in Mizuho’s global corporate department, said in an interview with Bloomberg.
Tanakamaru added that he hopes the push into transaction businesses – including cash management and trade finance services for corporates — will help to boost the volume of foreign exchange Mizuho handles by 20 percent in the year to March 31, from US$500 billion in the previous fiscal year.
International expansion has become a core area of focus for Japan’s biggest banks as the country’s negative interest-rate policy places increased pressure on profitability.
Mizuho opened its global transaction-banking headquarters in Singapore last year.
The business unit has roughly doubled its staff numbers in the past three years, now reaching a total of 280 in its offices in Singapore, Tokyo, Hong Kong, China, New York and London, according to Tanakamaru.
“We’ve got our people and our organization in place now; this year and next year will be the time to reap rewards,” he said.
In a bid to better compete with international rivals, the Tokyo-based bank is also focusing on improving its product-development abilities, including expanding online systems for supply-chain finance and currency management. Last month, the bank executed a trial of a blockchain-based trade-finance solution including issuance of a letter of credit and delivering trade documents, which is now ready to roll out to clients, Tanakamaru said.