TOKYO -- Sumitomo Mitsui Banking Corp. will expand operations in Mexico by boosting its ability to lend in the local currency as well as starting leasing operations there. The unit of Sumitomo Mitsui Financial Group thinks Japanese companies, particularly automakers, will continue to expand into the Latin American country over the mid- to long term, increasing the need for finance in Mexican pesos. SMBC established a local-currency lending unit in Mexico two years ago. The company raised the capital for SMBC SOFOM in November and will increase it again over a 12-month period, boosting capital from the initial 360 million pesos ($17.4 million) to 1.46 billion pesos and quadrupling the unit's lending ability. The banking company also is kicking off leasing of items such as industrial equipment in Mexico in order to expand transactions with Japanese businesses moving into that market, mainly automakers. In addition, SMBC will work with local partner Scotiabank Inverlat to provide a new cash management service to Japanese companies in Mexico. Customers with an account in each bank will be able to use SMBC's corporate internet banking service to make balance inquiries on Scotiabank Inverlat accounts as well as transfer instructions. Other Japanese banks are expanding into Mexico. Mizuho Bank plans to set up a Mexican peso lending unit this fiscal year, and Bank of Tokyo-Mitsubishi UFJ established a second office in the country in March. Last month's U.S. presidential election victory by Donald Trump raised concerns about the outlook for the Mexican economy, as the Republican has vowed to renegotiate the North American Free Trade Agreement. But Japanese banks appear to have gleaned from clients operating there that a sharp showdown is seen as unlikely. (Nikkei)
Sumitomo Mitsui Banking Corp (SMBC) is expanding operations in Mexico by enhancing its ability to lend in the local currency and commencing leasing activities. The firm thinks that Japanese carmakers in particular will continue to grow through the company, increasing the need for finance in Mexican pesos. SMBC is now leasing industrial equipment in Mexico to boost dealings with Japanese carmakers. Other Japanese lenders are also expanding in the country. Mizuho Bank is setting up a peso lending unit and Bank of Tokyo-Mitsubishi UFJ opened a second office there in March.