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The Japan Times
WORLD EYE REPORTS
SWITZERLAND







©THE JAPAN TIMES
Thursday, August 2, 2001

Japanese financial services find a home in the
land of bankers

Toru Ozawa (left), manager, and Masami Tozaki (right), president of Bank of Tokyo-Mitsubishi Switzerland, have a headstart on competitors in the Swiss financial market.

Given the importance of Switzerland as an international banking and financial center, it is not surprising that nearly every major Japanese bank has a presence in the country. However, a recent slowdown in Japan's financial sector has forced several banks to trim country operations across Europe and consolidate them with regional headquarters, which are usually based in London.

Bank of Tokyo-Mitsubishi (BTM) has defied this trend. It has remained the largest and one of the most successful of the Japanese banks in Switzerland, boosting profits and expanding its activities in spite of the gloom back home. Reflecting this upbeat situation, staff have been relocated from Tokyo and London to Switzerland to accommodate the increased business.

BTM Switzerland Ltd has lined up a complete range of financial services with an emphasis on Japanese equity sales, while it also offers corporate banking services and has over 20 years of experience in the private banking field. "In the securities business, BTM Switzerland focuses on lead managing equity-linked issuance by Japanese companies in the Swiss market; and then linking these products with Swiss buyers," explains company president Masami Tozaki.

The unfavorable performance of the Japanese equity market, however, has dampened the demand for the issuances, prompting BTM Switzerland to concentrate on a top-selling commodity: Japanese equity and fixed income products.

"We continue to be one of the leaders in underwriting and distributing Japanese corporate issuances. Unlike other Japanese banks, we also offer fixed income products issued in other global markets to Swiss investors," Tozaki points out.

With product development being carried out by Tokyo Mitsubishi International (TMI) in London, BTM Switzerland has focused on the local market by developing its sales force and providing Swiss institutional investors with a broader range of Japanese and Euro market products. Increased focus on Japanese equity (as well as Euro market) products and a specialized knowledge of its clients in Switzerland has allowed BTM to ride out the slowdown that its Japanese competitors are facing.

BTM Switzerland is keen on providing its clients - whether institutional or individual - with a conduit into the Japanese markets. The bank hopes to achieve this by remaining on ground zero and being able to form intimate business relationships, while its competitors still have to make calls to clients from regional offices located outside the country.

BTM has also forged ahead of its rivals in adapting to changes within the Japanese equity markets. While most Japanese banks entered the Swiss market with the bond issuance market in mind --and European and US banks came to conduct mainly private banking for wealthy individuals in their home markets -- BTM has seen opportunities in other areas as well.

"We foresee that the ownership of Japanese companies will experience a drastic change as traditional cross holding shares are released into the market," explains Tozaki. "Through our enhanced Japanese equity sales team, our goal is to service the Swiss investor appetite to participate in this change."

Its strong position in what is one of the worlds leading financial centers means that BTM is likely to prevail as the premier Japanese bank, both within Japan as well as globally.

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