Resona Holdings

Resona Holdings, Inc.
株式会社りそなホールディングス
Public K.K.
Traded as TYO: 8308
Industry Banking
Founded 1918 (1918) (as the Osaka Nomura Bank)
Headquarters Koto, Tokyo, Japan
Website www.resona-gr.co.jp
Resona Bank headquarters (former Daiwa Bank headquarters) in Chuo-ku, Osaka, Japan
Saitama Resona Bank headquarters (former Saitama Bank headquarters) in Urawa-ku, Saitama, Japan

Resona Holdings, Inc. (株式会社りそなホールディングス, Kabushiki-gaisha Risona Hōrudingusu) (TYO: 8308) is the holding company of Resona Group (りそなグループ, Risona Gurūpu), the fifth-largest banking group in Japan as of 2012.[1] It is headquartered in the Kiba area of Koto, Tokyo. The main operating entities of the group are Resona Bank, a nationwide corporate and retail bank headquartered in Osaka, and Saitama Resona Bank, a smaller bank headquartered in Saitama City which primarily serves Saitama Prefecture. Most of these banks' operations are descended from Daiwa Bank and Asahi Bank, which merged in 2003.

History

Daiwa Bank

Resona was formed as the Osaka Nomura Bank in 1918. This entity served as the financing arm of the Nomura zaibatsu founded by Tokushichi Nomura. Its securities brokerage operation separated in 1926 to form Nomura Securities, now Japan's largest securities company. The bank was renamed Nomura Bank in 1927 and became the main bank for the Osaka Prefecture government in 1929, immediately following the 1929 stock market crash.[2]

The Nomura zaibatsu was dissolved in the wake of World War II, and the bank was renamed to The Daiwa Bank in 1948. It was one of the only major banks that offered both banking and trust services during the postwar era.[2]

In 1995, a New York-based Daiwa bond trader, Toshihide Iguchi, lost $1.1 billion speculating in the bond market and was charged with forgery and falsification of bank records.[3] The bank was criminally indicted in November 1995 and ordered to leave the U.S. market; in the wake of this incident, there were talks of a merger between Daiwa and Sumitomo Bank, which would have created the world's largest bank at the time.[4] Daiwa closed its United States operations in 1996, and eventually pulled out of overseas banking entirely in 1998.[2]

Asahi Bank

Japan Saving Bank (日本貯蓄銀行) was formed by a 9-bank merger in May 1945 to consolidate various savings banks that served Japanese individuals around the end of World War II. During the immediate postwar era, rapid inflation threatened the bank's business. In 1948, it was converted to an ordinary bank named Kyowa Bank (協和銀行). Kyowa merged with Saitama Bank (埼玉銀行) in 1991 to form Kyowa Saitama Bank (協和埼玉銀行), renamed Asahi Bank (あさひ銀行) in 1992.

Asahi entered into merger talks with Sanwa Bank and Tokai Bank, and the three banks announced a merger in 2001. The merger would have created the third-largest bank in the world behind Deutsche Bank and Mizuho Financial Group.[5] However, Asahi pulled out of these talks later that year.[6] The eventual Sanwa-Tokai merger formed UFJ Bank.

Resona merger

Daiwa formed a bank holding company, Daiwa Bank Holdings, in December 2001 to serve as the parent entity of Daiwa, Kinki Osaka Bank and Nara Bank. Later that month, Daiwa announced that Asahi Bank would be acquired by Daiwa Bank Holdings in a share swap transaction, forming the fifth-largest banking group in Japan.[7] The company was renamed Resona Holdings, Inc. on October 1, 2002.

Daiwa and Asahi consolidated operations on March 1, 2003, with most of their assets combined to form Resona Bank. 100 Asahi Bank branches in Saitama and three branches in Tokyo were moved to a separate entity, Saitama Resona Bank.[8]

Post-merger developments

In early 2003 the Resona Group's capital adequacy ratio fell dangerously low. The bank had proposed to maintain its capital adequacy ratio above the legal limit by factoring in deferred tax assets. However, the value of these deferred assets could only be claimed if the company turned a profit in the future. Because of bank's profit outlook was so dim, Resona's auditor refused to certify the company's financial statement if the deferred tax assets were included. Without being able to count the deferred tax assets, the bank was effectively insolvent.

The Resona case threatened to cripple the entire country's financial system, since the other major banks were also counting on deferred tax assets to maintain their capital adequacy ratios. On May 17, 2003, the Japan government decided to inject 1.96 trillion yen in public funds into the Resona Group through Resona Bank.[9] This move, through the share exchange agreement between the bank and the holding company, effectively nationalized the bank, since the government emerged as the company's majority shareholder, holding 68.25% of voting rights of the holding company,[10] while the holdings of existing shareholders was greatly diluted. The existing management was sacked and a new management was installed.

Former Resona Chairman Eiji Hosoya is credited with leading the bank's revival following the 2003 bailout.[1] Hosoya initially resisted taking the appointment to head Resona, saying in a news conference held on May 30, 2003, "I decided to accept the offer as I realized that stabilizing the financial system is the highest priority for the Japanese economy."[1] Under Hosoya, the bank's new management immediately set about to reduce Resona's non-performing loans (NPLs). In 2004, the company managed to turn a profit of ￥386 billion. As a result, Resona's management announced a plan to, over the next 10 years, return to the government ￥868 billion of the ￥3 trillion in public funds it has received. Hosoya died in November 2012.[1]

Resona introduced two new full-time employee career tracks in 2015: one "no overtime" track for employees seeking better work-life balance, and another track for employees who wish to remain in a single position for their entire career. These policies were unique among Japanese banks at the time of their introduction.[11]

January 2014 staff suicide

January 2014, an unnamed employee, aged 25 year, in Ikebukuro, Tokyo, lost 150 million yen in foreign-exchange-market and other trading, without telling his bosses, committed suicide.[12]

Group companies

References

  1. 1 2 3 4 Hyuga, Takahiko (2012-11-05). "Resona Chairman Hosoya, Who Led Bank's Revival, Dies at 67". Bloomberg News. Retrieved 2012-11-24.
  2. 1 2 3 "The Daiwa Bank, Limited: 82 Years of History" (PDF). Resona Group. Retrieved 17 April 2015.
  3. ↑ "An Unusual Path to Big-Time Trading". The New York Times. 27 September 1995. Retrieved 17 April 2015.
  4. ↑ "Sumitomo May Rescue Daiwa Bank With Merger". Los Angeles Times. 4 November 1995. Retrieved 17 April 2015.
  5. ↑ "Japan banks in 3-way deal". CNN Money. 13 March 2000. Retrieved 17 April 2015.
  6. ↑ Dvorak, Phred (16 June 2000). "Asahi Exits Three-Way Bank Deal, Leaving Sanwa, Tokai to Clean Up". Wall Street Journal. Retrieved 17 April 2015.
  7. ↑ "Daiwa, Asahi Banks Agree To Merge in a Share Swap". The Wall Street Journal. 26 December 2001. Retrieved 17 April 2015.
  8. ↑ "Daiwa, Asahi banks merge within Resona group". Kyodo. 1 March 2003. Retrieved 17 April 2015.
  9. ↑ Receipt of Subscription Payments for New Common and Preferred Shares(Capital Increase with Public Funds), Resona press release, 30 June 2003.
  10. ↑ Announcement Regarding Change in Principal Shareholder of Resona Holdings,Inc Resona Holdings press release, 7 August 2003.
  11. ↑ "りそな、残業なし正社員を導入　大手行で初". Nihon Keizai Shimbun. 22 June 2015. Retrieved 27 June 2015.
  12. ↑ "
    1. 'Japanese banker who lost £900,000 he had persuaded clients to invest has committed suicide, according to reports.

      Resona Bank, where the 25-year-old worked, confirmed the man had taken his own life after his employers discovered he had frittered away 155 million yen (£900,000) without telling his bosses.

      The unnamed 25-year-old, who worked at the bank's Ikebukuro branch in Tokyo, invested the money using his employer's books after convincing three clients of the Osaka-based bank last year that he could generate profits if they entrusted their cash to him.

      The bank had raised eyebrows over the banker's activities in January after one of the three clients complained that he was uncontactable, reports Japan Today.

      "Most of the money appeared to be lost as he allegedly used the funds in foreign exchange and other trading," a bank spokesman said.

      After the loss was discovered the man killed himself the following day, the spokesman said.

      He added the case was "extremely regrettable" and that the incident had been reported to the Financial Service Agency.

      The suicide follows the death of a female French banker, named only as 'Lydia', who leapt to her death from the from a 14-storey window at French bank Bred-Banque-Populaire's Paris office after clashing with bosses.

      She was the first female finance professional that has taken their life after spate of suicides around the world rocked the industry.'
      in
      www.ibtimes.co.uk/japanese-banker-commits-suicide-after-losing-900000-bad-investments-1447017
      from
      www.ibtimes.co.uk/former-london-jp-morgan-manager-julian-knott-killed-wife-shotgun-murder-suicide-1455980
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      www.valuewalk.com/2015/01/bankers-suicide-conspiracy/
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      www.dailytelegraph.com.au/business/questions-over-spate-of-suicides-among-deutsche-bank-executives/news-story/a5c78b347192c143ccf2a9bf8c5f954e
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    2. 'TOKYO A Japanese banker who lost 150 million yen he had persuaded clients to invest off his employer's books has killed himself, Resona Bank said Friday.

      The unnamed 25-year-old told three corporate clients of the Osaka-based bank last year that he could generate profits if they entrusted their cash to him.

      The banker, who worked at the bank's Ikebukuro branch in Tokyo, collected a total of 155 million yen from them without informing his superiors, said a spokesman with the bank.

      "But most of the money appeared to be lost as he allegedly used the funds in foreign exchange and other trading," the spokesman said.

      In January, the bank questioned him over the case after one of the three clients complained that he was uncontactable.

      The following day the man killed himself, the spokesman said.

      The bank prohibits its employees from collecting funds for investment without permission.

      The case was "extremely regrettable," the spokesman said, adding that the bank has reported it to the Financial Service Agency.'
      in
      japantoday.com/category/crime/police-say-banker-killed-himself-after-y150-mil-rogue-trading-loss
      from google (resona ikebukuro suicide) result 1
    "    .
  13. ↑ Resona Holdings, Major Group Companies; retrieved 2011-07-18
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