
V. Gorshkov (victor.gorshkov@kaichi.ac.jp),
Kaichi International University, 1225–6, Kashiwa str., Kashiwa City, Chiba Prefecture, 277-0005, Japan
Acknowledgements. The study was elaborated under the joint research project “International Comparison on Multinational Corporations and Structural Changes in the Global FDI Flows” (category: general research topics) of the Joint Usage and Research Center, Kyoto Institute of Economic Research, Kyoto University, Japan.
Abstract. The paper focuses on entry cases of Japanese banks into Russia’s market by investigating the history of foreign entry, entry modes, and motivation for entry. By empirically examining the relevant cases, we demonstrate that the foreign entry of Japanese banks into Russia’s market was implemented in several stages starting from the 1992 and was mostly motivated by “follow the customer approach.” During the initial stages of entry, Japanese banks actively applied the “organic growth strategy” and established representative offices in Russia that were later transformed into domestic subsidiaries (Russia’s domestic juridical entities with Japanese capital participation). The paper also highlights the fact that the motivation for entry and entry modes of Japanese banks in Russia are subject to change over time. The analysis of activities of banks with Japanese capital participation of more than 50% reveals that starting from 2006, Japanese banks preferred the brownfield type of investments and acquired a few Russian banks in order to minimize costs of entry and other transaction costs. The detailed examination of the ultimate owners of banks with foreign capital participation allowed to identify the fact that Japanese banking FDI is directed to Russia via third countries such as Germany and the Netherlands. In addition, we defined the following segments of Russia’s banking market where banks with Japanese capital participation operate: support of Japanese companies and their affiliated businesses in Russia, financial services procurement to large Russian companies and banks, retail business (automobile credits), and internet-banking. Despite the fact that the activities of banks with Russian capital participation remain rather limited, recent agreements on further promotion of Japan-Russia economic cooperation leave a window of opportunity for Japanese banks to increase the scope of their activities in Russia. In fact, some banks already demonstrate growing interests to financing small and medium enterprises in Russia.
Keywords: Japanese banks, motivation of entry, entry modes, types of investments, banking FDI, Russia
REFERENCES
1. Gorshkov V. Inward Entry of Japanese Banks into the Russian Market. KIER Discussion Paper Series, Kyoto University, 2013, no. 864. 19 p.
2. 全国銀行協会「全国銀行資本金,店舗数,銀行代理業者数,役員数一覧表」,平成28年3月末現在 [Japanese Bankers Association. Capital, Number of Branches, Representative Offices, and Number of Directors and Office Workers of Banks, 31 March 2016. (In Jap.)] Available at: https://www.zenginkyo.or.jp/abstract/stats/year2-02/account2015-terminal/ (accessed 06.03.2017).
3. Pruss E. A. Territorial'naya struktura yaponskikh bankov v SShA [The Territorial Structure of Japanese Banks in the U.S.A]. Regional’nye issledovaniya, 2011, no. 3(33), pp. 129-134.
4. Yamori N. A Note on the Location Choice of Multinational Banks: the Case of Japanese Financial Institutions. Journal of Banking and Finance, 1998, no. 22, pp. 109-120.
5. Yamori N. Do Japanese Banks Lead or Follow International Business? An Empirical Investigation. Journal of International Financial Markets, 1997, vol. 7, issue 4, pp. 369-382.
6. Duser J. T. International Strategies of Japanese Banks: The European Perspective. Palgrave Macmillan, 1990. 206 p.
7. Ruhr M., Ryan M. “Following” or attracting the customer? Japanese Banking FDI in Europe. Atlantic Economic Journal, 2005, vol. 33, issue 4, pp. 405-422.
8. Aoki M., Hugh P. The Japanese Main Bank System. Its Relevance for Developing and Transforming economies. Clarendon Press Oxford, 1995. 698 p.
9. 行木愼一「邦銀のアジア関連ビジネスの現状と留意点–followerからleaderへ」,2002年,145–171ページ. [Yukimoto S. Asia-Related Business of Japanese Banks: from Followers to Leaders, 2002. (In Jap.)] Available at: http://www2.jiia.or.jp/pdf/asia_centre/h14_economy/09_nameki.pdf (accessed 10.01.2017).
10. Gorshkov V. A. Analiz motivatsii yaponskikh bankov na rossiiskom rynke [Analysis of Motivation of Japanese Banks on the Russian Market]. Materialy III Mezhdunarodnoi nauchno-prakticheskoi konferentsii “Ustoichivoe razvitie: obshchestvo i ekonomika” [Proceedings of the III International Scientific Conference on “Sustainable development: Society and Economy”]. Saint Petersburg State University, 20–23 April 2016, pp. 426-427.
11. Gorshkov V. Foreign Banks’ Entry into the Russian Market: Motivation, Entry Modes, and Strategies. KIER Discussion Paper Series, Kyoto University, 2011, no. 801. 18 p.
12. ロシアNIS貿易会「ロシアの銀行・金融部門の最新事情」,特別報告書,2007年,96ページ.[Japan Association for Trade with Russia & NIIS. Banking and Financial Sector in Russia: Recent Trends of Development. Tokubetsu houkokushyo. Special Report, 2007. 96 p. (In Jap.)]
13. 今井雅和「みちのく銀行のロシア市場参入戦略」,『高崎経済大学論集』,2004年,第47巻,第2号,51–65ページ.[Imai M. Entry Strategy of Michinoku Bank on the Russian market. Bulletin of Takasaki City University of Economics, 2004, vol. 47, no. 2, pp. 51-65 (In Jap.)] Available at: http://www1.tcue.ac.jp/home1/k-gakkai/ronsyuu/ronsyuukeisai/47_2/imai.pdf (accessed 10.01.2017).
14. Potapov A. Yaponskie banki idut v Rossiyu [Japanese Banks Are Going to Russia. Kommersant, 06.10.2006, no. 164, pp. 22-23.
15. ジェトロ「2015年度ロシア進出日系企業実態調査」, 2016年3月, 32ページ.[JETRO. 2015 Survey on Business Conditions of Japanese-Affiliated Firms in Russia. March 2016. (In Jap.)] Available at: https://www.jetro.go.jp/ext_images/_Reports/01/33078c8ceeccaa7c/20150164.pdf (accessed 06.03.2017).
16. Terent'eva A., Bochkareva T. Yaponskie banki ispugalis' sanktsii [Japanese Banks Are Afraid of Sanctions]. Vedomosti, no. 3574, 21.04.2014. Available at: http://www.vedomosti.ru/newspaper/articles/2014/04/21/yaponskie-banki-ispugalis-sankcij (accessed 06.03.2017).
17. Seliverstova N. SMI: yaponskie banki khotyat kreditovat' rossiiskii biznes cherez Al'fa-bank [Mass Media: Japanese Banks Want to Credit Russia’s Business via Alfa-Bank]. RIA Novosti, 12.12.2016. Available at: https://ria.ru/economy/20161212/1483340318.html (accessed 06.03.2017).
18. Central Bank of Russia. Information on Credit Organizations with Non-Residents’ Participation as of October 1, 2016. 2016, pp. 1-11 (In Russ.) Available at: http://www.cbr.ru/analytics/bank_system/pub_161001.pdf (accessed 23.01.2017).
19. Gorshkov V. Inward Foreign Entry of Banks into Russia’s Banking Sector. The Journal of Comparative Economic Studies, 2015, vol. 10, pp. 183-202.
20. Rating of Banks as of December 2016 (In Russ.) Available at: http://bankir.ru/rating (accessed 23.01.2017).
21. JSC “Mizuho Bank (Moscow)”. Auditors’ Report on Financial Statement 2015. April 2016. 53 p. (In Russ.) Available at: https://www.mizuhobank.com/russia/ru/about/pdf/ifrs_fs_2015_rus_mizuho.pdf (accessed 06.03.2017).
22. JSC “Mizuho Bank (Moscow)”. Financial Statement 2013 and Auditors’ Report from Independent Auditors. March 2014. 45 p. (In Russ.) Available at: https://www.mizuhobank.com/russia/ru/about/pdf/ifrs_fs_2013_rus_mizuho.pdf (accessed 06.03.2017).
23. JSC “Sumitomo-Mitsui Rus Bank”. Financial Statement as of 31 December 2015 and for 2015. 57 p. (In Russ.) Available at: http://smbcr-bank.ru/file/msfo2015.pdf (accessed 06.03.2017).
24. JSC “Bank of Tokyo-Mitsubishi UFJ”. Financial Statement as of 31 December 2015 and for 2015. 80 p. (In Russ.) Available at: http://www.bk.mufg.jp/global/globalnetwork/emea/zao/pdf/IFRS_2015_Rus.pdf (accessed 06.03.2017).
25. JSC “Toyota Bank”. Financial Statement 2015 and Auditors’ Report. 47 p. (In Russ.) Available at: https://bank.toyota.ru/documents/MSFO-15-rus.pdf?refi=undefined&ref=undefined&_ga=1.242261762.1877634675.1485060345 (accessed 06.03.2017).
26. Selezneva M. M. Strategicheskii trend rossiiskogo banka s yaponskim kapitalom [Strategic Trend of Russian Bank with Japanese Capital]. Molodoi Uchenyi, 2015, ¹ 10 (90), pp. 782-787.
Registered in System SCIENCE INDEX
No comments