Metrobank partners with 35 Japanese banks

MANILA, Philippines - Metropolitan Bank & Trust Co. (Metrobank) has inked new business agreements recently with 35 Japanese regional banks.

The new bank partnership agreements came on the heels of a business alliance agreement between the Japan Bank for International Cooperation (JBIC) and Metrobank.

The recent JBIC Roadshow in Japan initiated a series of cooperation agreements between Japanese regional banks to become part of the Metrobank’s roster of partner banks under the JBIC arrangement. 

Metrobank will serve as the Philippine counterpart of the Japanese regional banks to serve its Japanese small and medium enterprise (SME) clients for their local operations or expansion plans.

The SMEs, in turn, are the primary sources of raw materials, finished and semi-finished products that end up with major Japanese manufacturing firms.

The bank’s expertise in the Philippine business landscape can provide financial advice and local insight for the Japanese enterprises and assist them in their requirements, such as access to financing and open accounts in the local currency through Metrobank’s expansive network in the country.

Metrobank senior vice president for Corporate Banking Group Anthony Ocampo said in a statement that through the bank’s dedicated Japan Desk, “the bank would be able to meet the needs of their Japanese clients so they can conduct their local operations and expansions with ease.”

Earlier, Metrobank inked banking agreements with major Japan-based financial institution such as Hyakugo Bank Ltd., Ogaki Kyoritsu Bank Ltd., The 77 Bank, Okazaki Shinkin Bank, Akita Bank, Iyo Bank, Chugoku Bank, and Hyakujushi Bank.

Metrobank Tokyo general manager and country manager Kenichi Katakura said that the business alliance between Metrobank and the Japanese banks aims to support the Japanese SME clients in their future operations in the Philippines.

“With this partnership, the Japanese enterprises will have access to financing and will enable them to open accounts in the local currency,” Katakura added.

The Ty-led universal bank has a strong Japanese linkage through its Metrobank Tokyo branch as well as a dedicated Japan desk within its Corporate Banking Group that specializes in handling the needs and addressing the concerns of Japanese businesses operating in the Philippines.

As Japanese companies shift operations to rapidly growing Asian economies like the Philippines, local banks need to provide the support necessary for these enterprises to expand outside their home country.

Since 2011, the foreign direct investment (FDI) from Japanese manufacturers to the Philippines has been increasing.

Japanese manufacturers believe the Philippines will further increase its position as a strategic location for export-oriented industries compared to other Asian nations.

They favor locating in industrial parks and export processing zones, which offer a basket of incentives.

Japan accounts for 28 percent of total exports and 11 percent of imports. The Philippines is a leading exporter of coconut, pineapple, abaca and electronic products like processors, chips and hard drives (more than 40 percent of total exports.