Sumitomo Mitsui and Bank of Yokohama to talk about partnershipStaff writer ▼ | August 29, 2014
Sumitomo Mitsui Trust Bank and Bank of Yokohama agreed to discuss forming a partnership in managing retail customers' money.
Asia Two banks in talks about their merger
The new company will offer investment products designed for "long-term, diversified and stable asset management," according to a statement by the banks. These could include balanced funds, which hedge their bets by investing in multiple asset classes. Bank of Yokohama will sell these products through its branch network, collecting sales charges and a cut of management fees.
Depending on the success of the alliance, Sumitomo Mitsui Trust may forge similar partnerships with other local banks, most of which lack asset management units. This shortcoming makes it hard to develop exclusive investment products. Asset management could become a new focus of cooperation among Japanese banks. ■