Financial Sector

May 2007

FSA To Lure Foreign Financial Firms To Tokyo Station Area
The Financial Services Agency hopes to attract foreign financial institutions to the Nihonbashi and Marunouchi business districts around Tokyo Station by making it easier for foreigners to live and work there. The agency will work with the Urban Renaissance Headquarters, a government panel chaired by Prime Minister Shinzo Abe, to promote the development of high-rises that combine offices with luxury rental apartments. They also plan to attract hospitals with English-speaking personnel and schools for the children of expatriates to the area. This plan to attract foreign firms is to be announced by Financial Services Minister Yuji Yamamoto in a lecture next week. The goal is to strengthen Tokyo's position as an international financial center. At the Financial System Council, which is currently discussing revitalizing the Tokyo market, one of the issues raised was bolstering the urban infrastructure. Some council members pointed out that Tokyo has few residential, medical and educational facilities for high-income foreigners compared to London and New York. The FSA and Urban Renaissance Headquarters decided that the area around Tokyo Station is ideal because the Bank of Japan's head office is there, as are the headquarters of domestic financial institutions, and because the area is easily accessible. (The Nihon Keizai Shimbun, May 19, 2007)

Aeon Files For Banking License With FSA
Japanese supermarket operator Aeon Co. said it has submitted a preliminary application to financial authorities requesting a banking license. Aeon said a unit of the firm, which is preparing to enter the banking business, has submitted the application with the Financial Services Agency. Aeon announced a plan earlier this year to offer banking services to its retail customers as soon as this autumn. It aims to draw customers to the bank using customer traffic at its supermarkets. It is the second major retailer in Japan to seek a banking license, following convenience store giant Seven & I Holdings Co., which operates Seven Bank. (Dow Jones, May 16, 2007)