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Corporate Banking in Japan

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

Last updated: March 2026 · Data source: public Pillar 3 disclosures
Banks tracked
3
Headquartered in Japan
Total corporate EAD
EUR 262.4tn
Combined exposure
Avg cost-to-income
60.0%
Operating efficiency
Avg corporate PD
1.26%
Probability of default

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.

#BankC/IAvg PD LGDEADRAROCMin spread
1MUFG57.6%1.18%39.6%EUR 83.4tn7.37%254bp
2Mizuho Financial Group64.2%1.70%39.0%EUR 82.5tn7.37%254bp
3Sumitomo Mitsui Financial Group58.2%0.90%41.0%EUR 96.5tn7.35%256bp
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FAQ: corporate banking in Japan

How many banks in Japan does OpenRAROC cover?
OpenRAROC tracks 3 banks headquartered in Japan, with a combined corporate credit exposure of EUR 262.4tn reported in their most recent Pillar 3 CR6 disclosures.
Which Japan bank has the tightest corporate credit pricing?
On a representative BBB+ EUR 25M 5-year term loan, MUFG requires the lowest minimum spread to clear a 12% RAROC hurdle (254bp), making it the cheapest lender in the Japan cohort on that specific deal.
What is the average cost-to-income ratio of Japan banks?
The 3 Japan banks in the dataset report an average cost-to-income ratio of 60.0% and an EAD-weighted average corporate probability of default of 1.26%.
How is RAROC calculated for Japan banks?
Each bank is priced on the same BBB+ EUR 25M 5-year term loan, using its own disclosed cost-to-income, effective tax rate, funding spread, and IRB-approach PD/LGD parameters. See the methodology page for the full formula.