Corporate Banking in Japan

RAROC profiles and pricing benchmarks for 3 Japan banks, sourced from Pillar 3 disclosures.

Overview

OpenRAROC tracks 3 banks headquartered in Japan with a combined corporate credit exposure of EUR 262.4tn. The average Japan bank in our dataset has a cost-to-income ratio of 60.0% and an average corporate probability of default of 1.26%. On a representative BBB+ EUR 25M 5-year term loan, these banks generate an average RAROC of 7.36%.

Cheapest vs most expensive in Japan

On the standard sample deal, MUFG is the cheapest lender in Japan, requiring just 254bp to hit a 12% RAROC hurdle. The most expensive is Sumitomo Mitsui Financial Group at 256bp — a difference of 2bp on the same deal. For a EUR 25M facility, that's EUR 4,536 per year in interest expense.

All 3 banks ranked by RAROC

RAROC computed on a representative BBB+ rated, 5-year, EUR 25M term loan at 150bp spread. Click any bank for its full profile.

#	Bank	C/I	Avg PD	LGD	EAD	RAROC	Min spread
1	MUFG	57.6%	1.18%	39.6%	EUR 83.4tn	7.37%	254bp
2	Mizuho Financial Group	64.2%	1.70%	39.0%	EUR 82.5tn	7.37%	254bp
3	Sumitomo Mitsui Financial Group	58.2%	0.90%	41.0%	EUR 96.5tn	7.35%	256bp

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