Biggest Banks Japan: Overview of Top Institutions

Japan's banking system is one of the most developed in the world, with a long history dating back to the 19th century. The country is home to some of the largest and most respected banks globally.

Mitsubishi UFJ Financial Group (MUFG) is Japan's largest bank by assets, with a history spanning over 400 years. It was formed in 2005 through the merger of Mitsubishi Bank and UFJ Bank.

Mizuho Financial Group is another major player in Japan's banking industry, with a market capitalization of over $100 billion. The company was established in 2002 through the merger of three major banks: Dai-Ichi Kangyo Bank, Fuji Bank, and the Bank of Tokyo-Mitsubishi.

Sumitomo Mitsui Financial Group (SMFG) is the third-largest bank in Japan, with a history dating back to 1916. The company was formed through the merger of Sumitomo Bank and Mitsui Banking Corporation.

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Japan has a robust banking system, with some of the largest banks in the world operating within its borders. The country's banking system is one of the largest in the world and operates similarly to other institutions globally.

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Revolut is one of the top banks in Japan, although it's worth noting that it's not a traditional Japanese bank. The remaining top 10 banks in Japan are Mitsubishi UFJ Financial Group, Japan Post Bank Co., Ltd., Mizuho Financial Group, Sumitomo Mitsui Financial Group, Norinchukin Bank, Resona Holdings, Fukuoka Financial Group, Chiba Bank, Bank of Yokohama/Concordia Financial Group, and Hokuhoku Financial Group, Inc.

The Bank of Japan is the central bank of Japan and has a significant impact on the country's financial stability. It issued its first currency note in 1885 and has since become one of the most influential central banks in the world.

Here are the top 11 banks in Japan:

The Japanese banking sector has undergone significant changes in recent years, with a shrinking population and a shift towards online banking.

Japan's banking system is classified into foreign banks and domestically licensed banks, which include regional, city, and trust banks. The traditional banks in Japan were divided into commercial banks, long-term credit banks, trust banks, and loans and savings banks.

The banking system has evolved over the years, with non-banking operations like consumer loans and credit cards emerging in the 1980s. This has led to a blurring of lines between traditional banking functions and non-banking operations.

Here's a breakdown of the structure of banks in Japan:

The banking system in Japan is quite complex, but it's divided into two main categories: foreign banks and domestically licensed banks. Domestically licensed banks include regional, city, and trust banks.

In the past, traditional banks in Japan were divided into clearly defined segments. For example, there were commercial banks, long-term credit banks, trust banks that handled retail banking activities, and loans and savings banks.

Here's a breakdown of the traditional bank segments in Japan:

In the 1980s, non-banking operations like consumer loans and credit cards started to emerge. These organizations began offering traditional banking functions, such as issuing loans.

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Digital banking in Japan has been rapidly evolving to meet customer demands, with established banks expanding their online and mobile banking platforms. This is evident in the growth of online banks like Seven Bank, Rakuten Bank, and Sony Bank, which cater to international residents with features like multi-currency accounts.

Online banking services are widely available in Japan, with most banks offering internet banking in English, although some apps may be in Japanese only. For example, Sony Bank provides banking through the web in English, but its smartphone app is in Japanese.

Prestia is a notable online bank that offers a free monthly fee and free transfer fees to and from other banks, making it an attractive option for foreign residents. However, it's worth noting that some banks, like MUFG Bank, charge higher transfer fees to other banks.

ATM withdrawal fees vary among banks, with some offering free withdrawals at their own ATMs while others charge a fee. For instance, SMBC allows free withdrawals at its ATMs, while MUFG Bank charges 110 yen for weekday after-hours withdrawals.

The following table summarizes the monthly fees and transfer fees for some online banks in Japan:

Note that some banks may have additional fees or restrictions, so it's essential to review the terms and conditions before opening an account.

To open a bank account in Japan, you'll need to meet the general requirements, which vary depending on your visa type. If you're on a work or student visa, you're eligible to open an account with most banks.

You'll typically need to open a futsu yokin, the Japanese term for a general deposit account.

Foreigners on a 90-day tourist visa aren't eligible to open an account, so it's essential to check your visa status before attempting to open a bank account.

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If you're new to banking in Japan, understanding the different features and fees can be overwhelming. For instance, some banks have 24-hour customer service, while others have more limited hours.

Most banks in Japan offer online banking services, but the experience can vary depending on the bank and the device you use. For example, Shinsei Bank and Sony Bank offer web banking in English, but their smartphone apps are only in Japanese.

You can access online banking services from most banks in Japan 24 hours a day, 7 days a week, except for some banks that have limited hours on Sundays.

The fees for online banking services also vary from bank to bank. For example, Prestia Bank has a free monthly fee, but charges a 2,200 yen monthly account maintenance fee. MUFG Bank, on the other hand, has a free monthly fee, but charges a transfer fee to other banks.

Here's a comparison of some of the banks mentioned in the article:

Some banks also offer free transfers to their own accounts, but charge a fee for transfers to other banks. For example, Sony Bank offers free transfers to its own accounts, but charges 220 yen for transfers to other banks after the first two free transfers.

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SBI Shinsei Bank is a popular choice among foreigners in Japan, but it now requires a 6-month waiting period to open an account, unless you're employed by a Japanese company.

This waiting period can be inconvenient, especially if you need to send money home. Recent experience suggests that SBI Shinsei is still one of the easiest Japanese banks to set up with, especially for new arrivals.

Some Japanese banks may allow you to open a basic bank account immediately, but put a 6-month waiting period in place before you can transfer money from your account.

Here are some notable Japanese banks:

SBI Shinsei is a popular bank among foreigners in Japan, but it's recently changed its rules. It now requires clients to live in Japan for at least 6 months to open an account.

This waiting period can be waived if you're employed by a company in Japan. Our team has found SBI Shinsei to be one of the easiest Japanese banks to get set up with, especially for new arrivals.

You can open an account with your signature instead of a hanko, and enjoy telephone and online banking in English and Japanese. However, some banks may put a 6-month waiting period in place before you can do any transfers from your account.

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Prestia SMBC Trust Bank is a great option for those who need Japanese and English banking services. They don't require a hanko to open an account, just your signature.

Telephone and online banking with Prestia SMBC Trust Bank is available in English, which is a big relief for many expats. They also offer a savings account with a separate foreign currency account.

A regular account with Prestia SMBC Trust Bank comes with a monthly "maintenance fee" of 2,200yen, unless you meet certain waiver requirements. These requirements include having an average balance of over 500,000yen, holding a loan from Prestia, or having a Prestia affiliated credit card.

The "GOLD" account with Prestia SMBC Trust Bank has no fees, but it's geared towards people on expat packages with a lot of disposable income.

SMBC is a traditional banking house that offers a lot to its customers. They have a fully functional English language smartphone app, making it easy for foreigners to manage their accounts.

You can resolve most banking issues online with SMBC, but if you need help, there's likely a branch within a 15-minute walk of your apartment.

Their trust bank, SMBC Prestia, is geared more towards individual customers and is generally more foreigner-friendly.

Mizuho is one of the most traditional domestic banks in Japan, and it's a great option for those who need a more personalized banking experience. To open an account, it's recommended to bring both your hanko (a traditional Japanese seal) and a Japanese speaker if you aren't fluent.

Mizuho Financial Group is a public sector bank holding company with its headquarters in Tokyo's Otemachi district. Established in 2003, this group offers various banking services around the globe, including business and retail banking, corporate and institutional company services, and asset management services.

The bank has a significant presence, employing around 59,132 employees as of 2020 and having a net income of ¥603.54 billion as of 2017. It's one of the largest financial institutions in the world, offering financial and strategic services through its group companies.

Mizuho Financial Group focuses on corporate banking and has a good reputation in Japan's banking industry. Its customers are mostly entrepreneurs and business people who appreciate the bank's various services for business capitalization.

Here are some of the services offered by Mizuho Financial Group:

The bank has a significant global presence, with 900 offices and 60,000 experts worldwide. In 2018, Mizuho Financial Group won the Asian Banker Transaction Award.

Sumitomo Mitsui is a well-established banking group in Japan with a rich history.

It was established in 2002 through a merger between two banks, making it one of the top banks in Japan for foreigners. The group has a capital stock of 2338.7 billion yen and offers a wide range of services, including commercial banking, leasing, securities, and consumer financing.

SMFG has a strong presence in Japan, with 18 branches, 22 sub-branches, and 4 representative offices as of March 31, 2018. The group reported a profit of JPY 723,320 Million in the first nine months of 2018.

The group's services include deposit services in both local and foreign currencies, as well as investment and insurance funds that can be developed over a specified period. This makes SMFG a one-stop-shop for all financial needs.

Here are some of the key services offered by Sumitomo Mitsui Financial Group:

With such a diverse range of services, it's no wonder that SMFG has won the hearts of most of Japan's population.

Norinchukin Bank is a significant player in Japan's financial sector. It was founded in 1923 by the Japanese government to support the country's agricultural prospects.

The bank has a long history of playing a crucial role in rebuilding post-World War II, especially with investments in the textile industry. Its investment portfolio is impressive, with over $400 billion in assets.

As Japan's largest institutional investors' bank, Norinchukin Bank has a significant presence globally, with branches in New York, London, and Singapore. It invests in a variety of areas, including bonds, securitization facilities, private stock equity, real estate, forest, and fisheries.

Here are some key services offered by the bank's Corporate Segment:

The bank's Market Segment is responsible for procurement and operation of funds, FOREX, bonds, and derivative facilities.

As of March 31, 2018, the bank's total assets were JPY 104,927.7 billion.

Hokuhoku Financial Group is a Japanese banking group established in 2003 with its headquarters in Toyama. It operates as a super-regional financial network covering the entire Hokuriko region.

The group consists of Hokuriku Bank, Hokkaido Bank, and other segments, which offer various financial services. Hokuriku Bank and Hokkaido Bank underwent management integration in 2004 to form the Hokuhoku Financial Group.

Hokuhoku Financial Group provides banking services to individuals and small and medium-sized enterprises in Japan. Its ordinary income for nine months in 2018 was JPY 136,211 million, with an ordinary profit of JPY 24,509 million.

The bank has 179 branches in Japan and 9 overseas offices. It offers various deposit and loan products, as well as other financial services.

Here are the key statistics about Hokuhoku Financial Group:

Mitsubishi UFJ Financial Group is the largest financial group in Japan, founded in 1880, with its bank being one of the world's largest banks.

MUFG bank has branches throughout Japan and in 40 other countries, providing services to both individuals and businesses.

Mitsubishi UFJ Financial Group provides services in retail and commercial banking business groups, Japanese corporate and investment banking business groups, and financial services with local SMEs and individual customers.

The bank offers a diverse range of investment services for its customers, making it a great option for those looking to grow their wealth.

During the first half of the fiscal year ending March 2019, MUFG's gross profit fell 125.5 billion Yen year on year to 1882.5 billion yen.

The bank won the All Japan executive team most honoured company award by institutional investors' Magazine, a testament to its excellent management and services.

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Resona Holdings is a significant banking group in Japan, with a rich history dating back to 1918. It was established with a capital of 50.4 billion yen as of March 2018.

Resona Holdings is known for its wide range of services, including banking, trust banking, credit guarantee, and collection of bills and receivables. The bank has a significant presence in Japan, with 834 branches throughout the country as of September 2018.

Resona Holdings is the result of a merger between Daiwa Bank, Asahi Bank, and Kyowa Bank in 2001. This merger has helped the bank to become one of the largest banking groups in Japan.

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The bank's focus on retail banking has made it a popular choice among customers, with many having more than one type of investment with Resona Holdings. Its wide branch network and online services have made it easier for customers to access financial and investment services.

Resona Holdings has a significant employee base, with around 59,132 employees as of 2020, although some of these employees may be part of its parent company, Mizuho Financial Group.

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Yokohama/Concordia is a significant player in the Japanese banking scene. It's the largest regional bank operating in southwestern Tokyo.

The bank was formed to fill the gap left by the collapse of several existing banks in the region. This merger was a crucial step in providing smoother financial services to the area.

In 2015, Bank of Yokohama announced a merger with Higashi-Nippon Bank to create Concordia Financial Group, Ltd. This move marked a significant shift in the banking landscape.

As a result of the merger, Concordia Financial Group was listed on the Nikkei 225 stock market index.

Fukuoka Financial Group is a Japanese company listed on the Nikkei, established as a financial holding with the holding of the Shinwa Bank as a wholly-owned subsidiary.

Its headquarters is located in Fukuoka, the largest city of Kyushu, situated in the south of Japan.

The group's primary services are banking, which includes deposits, loans, and domestic and foreign exchange services.

In addition to banking, Fukuoka Financial Group offers other services such as guarantees, revitalization support, loans management, and collection business.

The bank has a significant presence with 328 operating branches and 8 international offices in Asia, as of May 2017.

For the nine months of 2018, the company reported an ordinary income of JPY 179,830 million and an Ordinary profit of JPY 542,420 Million.

In 2016, the total income of the bank was $2 billion.

Chiba is home to Chiba Bank, a significant regional bank in Japan. Chiba Bank was established in 1943. It operates through 182 branches. The bank has a substantial network of 49,053 off-branch ATM locations and 3 money exchange counters. Chiba Bank has 3 overseas branches and 3 representative offices. The bank offers a range of products and services including deposit products, loans, bill discounting, securities, leasing, credit card, and credit lending business.