- Region: Oceania
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
August 31, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today a memorandum of understanding (MOU) with the State Bank of India (SBI), the largest state-owned commercial bank in India, for the development and the strengthening of a framework to support Japanese mid-tier enterprises as well as small and medium enterprises (collectively "SMEs") through Japanese regional financial institutions. Under this MOU, JBIC has built a framework for conducting continuous consultations with SBI to support business expansion into India by SMEs with which Japanese regional financial institutions have business relations, including the establishment of a Japan desk (a window for exclusively providing services to Japanese firms).
- Since the Financial Services Agency, the Ministry of Finance, and the Ministry of Economy, Trade and Industry issued a joint press release, the "Development and Strengthening of Support System by Financial Institutions for Small and Medium Enterprises' Entry into Asia through Coordination among Japanese Regional Financial Institutions, the Japan Bank for International Cooperation (JBIC) and Japan External Trade Organization (JETRO)" in December 2010, JBIC has been working with the Regional Banks Association of Japan, etc to strengthen partnerships with foreign financial institutions, while identifying the needs of SMEs for expanding overseas business operations through Japanese regional financial institutions. Under the policy set forth in this joint press release, SBI is the third bank with which JBIC has signed an MOU, following KASIKORNBANK Public Company Limited (KBANK) in the Kingdom of Thailand and PT. Bank Negara Indonesia (Persero) Tbk (BNI) in the Republic of Indonesia.*1 Support for SMEs through the Japan desk is set forth as the "Financial Strategy" in the "Rebirth of Japan: A Comprehensive Strategy" decided by the Japanese Cabinet on July 31, 2012. This MOU is a part of that strategy.
- SBI, a state-owned commercial bank established in 1806 in India, is seeking to increase lending for Japanese SMEs that are expected to expand business operations in India. Based on this MOU, JBIC will conduct discussions with SBI in seeking to build a concrete collaborative framework in order to support the expansion of business operations in India by Japanese SMEs.
- Drawing lessons from its efforts made in materializing this MOU, JBIC, in cooperation with Japanese regional financial institutions, intends to actively seek MOUs with other Asian financial institutions, thereby developing and strengthening a framework to support Japanese SMEs.
- *1 See Press Releases on May 30, 2011 on the MOU with KBANK and on July 28, 2011 on the MOU with BNI.