What does the IBA Japan do?
IBA Japan engages with the Japanese authorities and with other stakeholders so that they are aware of our members’ views and we encourage them to take these views into account. Our overall goal is to achieve a strong and efficient market.
We act as a forum for members to exchange views and positions. Outputs include responses to consultations, agreed advocacy positions, participation in government or industry working groups and providing clarification on regulatory or legislative changes.
We also offer a wide range of member services which allow members to expand their professional knowledge and skills and help prepare them for the ever-changing needs and regulatory requirements of the industry.
What are IBA Japan’s objectives?
IBA Japan aims to promote and support a strong and efficient financial sector in Japan. We believe that international banks and associated firms can play an important role in achieving this.
When was IBA Japan formed?
IBA Japan began in 1984 as an informal group of 12 foreign commercial banks. Today there are about 52 bank and securities member firms as well as over 24 associate member firms. Since April 2013 IBA Japan has been incorporated in Japan as a general incorporated association (ippan shadan hojin). Click here to learn more about our history.
Is IBA Japan part of a larger organisation?
No. IBA Japan is an organisation incorporated in Japan and represents the interests of members based in Japan.
Where do IBA Japan’s members come from?
IBA Japan’s member firms come from 22 different countries including many from Asia, as well as Europe, the Americas and Australia.
Who can be a member of IBA Japan?
Foreign commercial banks and securities firms licensed in Japan or with representative offices are eligible for IBA Japan membership. This includes: foreign financial groups, commercial banks, securities companies, and bank and securities company representative offices.
We also have an associate membership category. Firms with certain characteristics operating in the areas of law, accountancy, tax, credit rating, consulting,exchanges and IT who provide services to foreign banks are able to apply for associate membership.
What attracts foreign banks and securities companies to Japan?
Japan is an important global market and because of this attracts many overseas financial business. It is the world’s third largest economy. There are over 60 Fortune 500 Companies in Japan including some of the most iconic global brands. Tokyo is an important domestic financial centre for the global economy and is a major source of liquidity and global investment. Japan has one of the world’s largest stock exchanges, is home to the largest pension funds, has one of the world’s largest government bond markets and has many cash rich firms. It also has the largest accumulation of personal wealth in the world.
What types of business do foreign banks carry out in Japan?
Foreign banks do a range of business including wholesale cross border activities such as trade financing, fundraising by international bond issuers, as well global M&A activities, remittance business and some retail business.
Is Japan a challenging business environment?
There are challenges in operating in Japan including the growth potential and the competitive strength of Japanese banks in their domestic market. But it can be a rewarding environment for those players who stick to a long-term business strategy and adopt an approach that fits in with Japanese cultural, social and business standards.
Is the regulatory environment different for foreign firms in Japan?
The Japanese financial regulations are consistent with global rules. There are no measures that prevent foreign banks operating in Japan but we are always working to improve the environment for foreign banks. We work closely with the regulatory authorities to ensure that the regulatory framework is clear and transparent for regulated firms including IBA Japan members to carry out their business.
Does IBA Japan play a role in global regulations and international financial policy?
IBA Japan is engaged in the international regulatory debate. We are a founder of the Japan Financial Markets Council (JFMC), which began in 2012. This is a grouping of five IBA Japan members and the three Japanese mega banks, Nomura and Daiwa. The JFMC’s aim is to engage with Japanese and international policy makers over the impact of global regulatory reforms on Japanese financial markets.