Banking and Finance in Japan

Japan’s banking system is comparable to those in other industrialised countries – it is stable and well regulated, and offers many options for business and personal accounts. Some, but not all banks provide English- language services. The Banking Act details the obligations and regulations for the banking sector, while the Financial Services Agency is the regulatory body.

City banks

City banks (Toshi ginko) are the largest banks in Japan, providing domestic and international banking services. Headquartered in Tokyo and Osaka with branches across the country, they also have offices in other countries. Banks in this category are:

  • Mizuho Bank
  • Sumitomo Mitsui Banking Corporation
  • The Bank of Tokyo-Mitsubishi UFJ
  • Resona Bank

Japan Post Bank is not categorised as a city bank, however, it is also one of the largest banks in Japan.

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Regional banks and regional II banks

Regional banks and regional II banks (Chiho ginko) are smaller than the city banks and are headquartered in towns and cities other than Tokyo and Osaka. Their business is mainly in the prefectures where they are located, and they may offer advantages for doing business in those locations, but are usually limited in some services compared to the city banks. 

Trust banks

Trust banks (Shintaku ginko) are authorised to carry out business for trusts in addition to their normal banking business. They combine financing services with asset management services.

Foreign banks

Foreign banks (Gaikoku ginko): There are currently 53 foreign banks operating in Japan. Foreign banks that have their headquarters in Japan in cooperation with Japanese banks (such as Citibank Japan) are not counted in this category and are treated as Japanese banks.

If you have a business in Japan, you will need to open a business account. Documentation requirements vary between banks, but as a general rule smaller banks require more proof of assets and may even request to inspect your offices. For an international business in Japan, opening an account with a larger ‘city’ bank or with a foreign bank in Japan that offers corporate accounts may be an easier option. Japanese banks will want proof that your business is legitimate and may ask for such things as brochures or a link to your business’ website. All account holders must comply with each bank’s policy on Anti-Social Forces.

Note that banks can refuse to open a business account for you, even if your business is properly registered in Japan.

Most companies also create a banking seal. Companies also usually have a square seal (kaku-in) which is often attached to invoices and receipts to make things look official, even though it carries no legal weight.

Australian banks operating in Japan

Australian banks operating in Japan include ANZ, Commonwealth Bank and National Australia Bank. All are located in Tokyo and offer a range of services mainly to institutional clients. ANZ and National Australia Bank also have branches in Osaka.

International banking

To send money overseas: The most popular way to send money out of Japan is by bank transfer. This can be done online or in person at a bank branch. If you transfer more than JPY 1 million (AUD 11,000), Japan Customs needs to be notified.

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Currency exchange

The Japanese yen is one of the world’s most traded currencies and is easily convertible to other currencies, including the Australian dollar. There are no laws or regulations limiting the convertibility of the yen.