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The Info List - The Bank Of Tokyo-Mitsubishi UFJ



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THE BANK OF TOKYO-MITSUBISHI UFJ, LTD. (BTMU; 株式会社三菱東京UFJ銀行, Kabushiki Gaisha Mitsubishi
Mitsubishi
Tōkyō Yūefujē Ginkō) is the largest bank in Japan. It was established on January 1, 2006, following the merger of the Bank
Bank
of Tokyo-Mitsubishi, Ltd. and UFJ Bank
Bank
Ltd. The bank serves as the core retail, corporate, and investment banking arm of the Mitsubishi UFJ Financial Group
Mitsubishi UFJ Financial Group
.

Its traditional client base is made up of Japanese corporates, but overseas corporate lending increased 35% in the nine months to December 31, 2011. The bank has steadily increased its tier 1 capital ratios from 7.76% in 2009 to 13.04% as reported in February 2012, and its credit ratings have been unaffected by developments in Europe. Standard & Poor’s assigned BTMU’s most recent series of senior unsecured bonds an A-plus rating (as at February 2012).

As of 31 October 2010, BTMU was ranked by Bloomberg as the largest bank in Japan and the eighth largest in the world.

The bank's head office is in Marunouchi
Marunouchi
, Chiyoda, Tokyo
Chiyoda, Tokyo
, and it has 772 other offices in Japan and 76 offices overseas.

CONTENTS

* 1 History

* 1.1 Formation * 1.2 Post-merger operations

* 2 Holdings * 3 References * 4 External links

HISTORY

FORMATION

BTMU is the product of three bank mergers that occurred between 1996 and 2006.

Mitsubishi Bank
Mitsubishi Bank
was founded in 1880 by a former samurai, Iwasaki Yatarō , and was a core member of the Mitsubishi
Mitsubishi
Group of companies. It merged with The Bank of Tokyo
Bank of Tokyo
in 1996 to form The Bank
Bank
of Tokyo-Mitsubishi, Ltd. (株式会社東京三菱銀行, Kabushiki kaisha tōkyō mitsubishi ginkō), which at that point was the world's largest bank in terms of total assets. In 1998, upon merger of the then second and third largest Swiss banks, Union Bank
Bank
of Switzerland and Swiss Bank Corporation
Swiss Bank Corporation
, the newly created UBS AG
UBS AG
became the second largest in the world at the time, behind only the Bank
Bank
of Tokyo-Mitsubishi. The Bank of Tokyo
Bank of Tokyo
had historically focused on foreign exchange business since its foundation as the Yokohama Specie Bank
Bank
in 1880, while Mitsubishi
Mitsubishi
had had a stronger focus on domestic corporate and retail banking. Both banks were relatively healthy in the wake of the Japanese asset price bubble
Japanese asset price bubble
.

Until the Tokyo- Mitsubishi
Mitsubishi
merger took place in 1996, Sanwa Bank , which was based in Osaka and was the anchor of the Sanwa Group keiretsu , had been considered the strongest bank in Japan, and it had aimed to be the world's largest bank during the "bubble era". By 2000, however, Sanwa was the fourth largest bank in Japan. It entered into merger talks with two other large banks, Asahi Bank and Tokai Bank
Bank
, to create the world's third-largest bank by assets. Asahi (now part of Resona Holdings ) pulled out of these talks later that year. By 2001, The Toyo Trust & Banking Co. had been added to the merger group and the combined company was to be called United Financial Holdings of Japan. The merger was completed in 2002 and the new bank was officially named UFJ Bank
Bank
Ltd. (株式会社ユーエフジェイ銀行, Kabushiki kaisha yūefujei ginkō). UFJ was headquartered in Nagoya, the historical headquarters of Tokai Bank. During its short life, it was plagued by bad debt problems and by infighting between the employees of its predecessor companies.

The holding companies of BTM and UFJ agreed to merge in 2005, forming Japan's largest bank by assets and market capitalization. This led to litigation between BTM and Sumitomo Trust PwC itself was fined $25 million in relation to the matter.

HOLDINGS

* UnionBanCal Corporation
UnionBanCal Corporation
(approx 63% in Feb 2005; 68% in 2004; 100% in 2008) * Chong Hing Bank (9.66%) * Morgan Stanley
Morgan Stanley
(22.41%). On September 29, 2008, Mitsubishi
Mitsubishi
UFJ Financial Group announced that it would acquire a shareholding in Morgan Stanley
Morgan Stanley
for US$9 billion. In the midst of the October 2008 stock market crash, concerns over the completion of the Mitsubishi deal caused a dramatic fall in Morgan Stanley's stock price to levels last seen in 1994. Morgan Stanley's share price recovered considerably after Mitsubishi
Mitsubishi
UFJ closed the deal on October 14, 2008.

REFERENCES

* ^ "Products and Services: Corporate & Investment Banking". http://www.bk.mufg.jp/global/. The Bank
Bank
of Tokyo- Mitsubishi
Mitsubishi
UFJ. External link in website= (help ) * ^ "Foreign exchange: BTMU Throws Off the Curse of the Zombie Bank". Euromoney. * ^ "Surprise, Surprise - The Biggest Bank
Bank
In The World Is...". HITC:NEWS. 2010. Retrieved 12 April 2011. * ^ "About The Bank
Bank
of Tokyo- Mitsubishi
Mitsubishi
UFJ, Ltd." The Bank