Japan's top regional bank Resona to deploy $92 bln for sustainable finance by 2030

Resona Holdings

02/06/2021 12:00

By Takashi Umekawa and Yuki Nitta
    TOKYO, June 2 (Reuters) - Japan's top regional bank Resona
Holdings will deploy 10 trillion yen ($92 billion) for
sustainable finance by 2030, its president said, as it seeks
alternative revenue sources in a country facing low interest
rates and a population decline.
    Resona will mainly extend loans to small and medium-sized
firms which tackle environmental, social and governance (ESG)
issues, according to the bank which has relationships with about
500,000 smaller corporate clients nationwide.
    As ESG issues become more mainstream, business rules and
clients' behaviour will have to adapt accordingly, Resona
President Masahiro Minami told Reuters.
    "There must be a chance for us when such changes come,"
Minami said in an interview last week which was embargoed for
publication on Wednesday.
    Unlike bigger banks that largely rely on profits from
overseas business, Resona  8308.T  follows "domestic standards"
which bans the bank from having branches outside the country. It
is thus focused on domestic markets for growth.
    But Minami acknowledged the overseas markets, particularly
growing Asian markets, look "extremely attractive" in terms of
demographics and economic growth.
    Japan's biggest lender Mitsubishi UFJ Financial Group Inc
 8306.T  has made investments in several Southeast Asian banks
over the years, while the No.2 bank Sumitomo Mitsui Financial
Group Inc  8316.T  recently said it would invest in Vietnam's
biggest non-bank lender FE Credit.  urn:newsml:reuters.com:*:nL4N2EG081 urn:newsml:reuters.com:*:nL1N2ML0U3
    "We are leading a different life from megabanks, and it
would also be difficult for us (to win) if we take the same
strategy as megabanks," Minami said.
($1 = 109.0600 yen)

 (Reporting by Takashi Umekawa and Yuki Nitta; Editing by Ana
Nicolaci)
 ((Takashi.Umekawa@thomsonreuters.com;))