Overseas investment opportunities beckon Japanese banks

by Richard Kilner

Story link: Overseas investment opportunities beckon Japanese banks

Mizuho Corporate Bank is to invest $1.2bn into Merrill Lynch & Co, reversing the trend of the relationship between Japanese and overseas banks.

The pursuit of investment by Western banks is ending due to the economic impact of the US subprime mortgage crisis and the ensuing credit crunch.

Opportunities are opening up for Japanese banks to invest overseas, but Japan is not the only country that could exploit the opportunities.

China and Middle Eastern nations have assisted Western banks hoping to bolster their financial situation, with Japanese financial institutions merely spectating.

However, the confidence is growing in the hearts of Japanese banking leaders and many now believe that the time is ripe for Japan to begin investing overseas once more.

Chances at foreign investment are not restricted to Europe or the US, however. The emerging economies of Asia are also a possible area the Japanese could invest in, exemplified by recent talks between Nomura Holdings and the Vietnamese Finance Minister.