Japan's biggest bank, Mitsubishi UFJ, says it's looking to make acquisitions in the U.S. and take stakes in a number of Asian institutions. Big Japanese banks have been chasing the overseas markets for growth while prospect for growth at home has been weak.
Mitsubishi UFJ, Japan's biggest bank by assets, says it's looking to make U.S. acquisitions and take stakes in a number of Asian institutions.
MUFG, one of the most active Japanese lenders in overseas expansion, controls UnionBanCal Corp and spent $9 billion to buy a 21 percent stake in Morgan Stanley at the height of the financial crisis.
Tatsuo Tanaka, group chief executive of global banking for the $68 billion financial goliath, says the U.S. offers the best acquisition targets, where it's in talks with five to six mid-size banks and up to 20 small institutions.
[Tatsuo Tanaka, Bank of Tokyo-Mitsubishi UFJ]:
"A lot of big names of American or European banks will go to the new market for their acquisitions, and based on UB (UnionBanCal), we have very strong interest in further expansion in U.S. operations."
MUFG and its Japanese rivals Mizuho and Sumitomo Mitsui Financial have been stepping up their overseas expansion in the face of weak growth prospects at home.
Tanaka says he expects MUFG to take stakes in banks in South Korea, Indonesia and Australia, while becoming an even bigger player in China.
[Tatsuo Tanaka, Bank of Tokyo-Mitsubishi UFJ]:
"China is so huge and there are a lot of opportunities for the expansion in the CIB (Corporate and Investment Banking) business model and also we have a very close alliance with Morgan Stanley, and there are a lot of occasions for further expansion in Greater China."
Tanaka says all timing will be influenced by capital adequacy ration considerations, but he expects buying competition to heat up in the near future.