- Fuji Bank
Infobox_Company
company_name = The Fuji Bank, Limited
company_
company_type = Public KK (TYO: 8317) (now defunct)
foundation =1864
location_city = flagicon|JapanTokyo
location_country =Japan
key_people = Zenjiro Yasuda, Founder
industry =Financial services
num_employees = 12,940 (2001 )
homepage =www.fujibank.co.jp The nihongo|Fuji Bank, Limited|株式会社富士銀行|Kabushiki-gaisha Fuji Ginkō was one of
Japan 's majorbank s during the post-World War II era. It combined withDai-Ichi Kangyo Bank and theIndustrial Bank of Japan in 2000 to formMizuho Financial Group .In 2002, Fuji Bank's corporate & investment banking division was transferred to
Mizuho Corporate Bank andretail banking division toMizuho Bank severally.History
Foundation and development
Fuji Bank traces its history as far back as the old
Yasuda zaibatsu .Seventeen year old
Zenjiro Yasuda migrated from Toyama toEdo , settling inNihonbashi . In 1864, he opened a dry goods store, simply titled Yasuda-ya (lit. Yasuda & Company).cite web | title=Yasuda, Zenjiro|url=http://www.ndl.go.jp/portrait/e/datas/343.html| date=2004] After theMeiji Restoration in 1869, the company positively underwrote bonds for Japanese government, whose credit standing was low then, and restore large treasury surplus. The company also financed manypublic works such as railroads,harbor constructions, and so forth.The company became incorporated in 1880, with a solid capital of 10 million yen accumulated in Yasuda-ya period, and changed its name to Yasuda Bank. In
Taishō period , the Japanese banking community were thrown into financial difficulties because ofWorld War I and1923 Great Kanto earthquake . Yasuda Bank aided many minor, small or medium banks, 11 of whichwere merged into Yasuda Bank in 1923. This merger helped Yasuda Bank become the largest Japanese bank in terms of deposits.After World War II
Following
World War II , Yasuda zaibatsu were dissolved by the SCAP. OnOctober 1 ,1948 , Yasuda Bank changed its name to The Fuji Bank, Limited. “Fuji” was named afterMount Fuji , which is a world-famous symbol of Japan, Fuji Bank aiming to be a world-famous Japanese bank. Fuji Bank formedFuyo Group , one of the largestkeiretsu s, together with former Yasuda zaibatsu companies.As the Japanese economy developed, Fuji Bank expanded its business, with leadership positions in syndicated lending, corporate banking, public money management, mortgages, and retail financial services.
Decline and merger
In the 1970s, Sumitomo Bank began to gain market share at Fuji Bank's expense in the retail banking. Fuji impatiently entered into rivalry with Sumitomo. In the late 1980s, however, the
Japanese asset price bubble comes, and the Japanese banks granted increasingly risky loans. After the bubble's collapse, Fuji's progressive plan also backfired. Fuji lost a great deal of money, swamped bynon-performing loan .In order to find a way out of the difficulties, Fuji Bank attempted to diversify its services, establishing Fuji Securities and Fuji Trust & Banking Co. in 1994. These subsidiaries, however, didn't make so large a profit. Meanwhile, Fuji Bank had to restructure, lay off thousands of employees and sold its 52% stake in
Heller Financial toGE Capital .A very successful derivatives sub company, Fuji Capital Markets Corp was founded in New York in 1990 going on to become one of the lead players in the swaps market. FCMC went on to open an offices in London in 1992 and Hong Kong in 1994 which still exist as Mizuho Capital Markets Corp. FCMC was noted at the time for its relatively advanced technology, and was one of the first Japanese Banks to connect to the internet, registering the fcmc.com domain in 1993.
On
November 24 ,1997 , Yamaichi, Fuji Bank's affiliated securities firm, announced it would cease operations and was declared bankrupt by theTokyo District Court . In addition, Yasuda Trust & Banking, Fuji Bank's affiliatedtrust company , ran into problems with earnings and credit quality in 1999. Fuji Bank bought a controlling stake in Yasuda Trust, but Fuji couldn't reconstruct Yasuda for itself any longer .Just in time,
Dai-Ichi Kangyo Bank proposed to Fuji its becoming a “white knight” for Fuji. Dai-Ichi Kangyo held superior assets, but was left behind the current of the Japanese banks mergers. Fuji Bank weakened by its non-performing loan had no choice but to merge with Dai-Ichi Kangyo, along with theIndustrial Bank of Japan , creatingMizuho Financial Group in2000 .eptember 11, 2001
During the
September 11, 2001 attacks on New York, Fuji Bank'sUnited States offices were located at the impact zone ofUnited Airlines Flight 175 in Tower 2. 15 Fuji Bank employees died in the attack.See also
*
Yasuda zaibatsu
*Japanese financial system
*Mizuho Financial Group
**Mizuho Bank
**Mizuho Corporate Bank References
External links
* [http://www.mizuho-fg.co.jp/english/ Mizuho Financial Group]
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