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Jessica Darnbrough
Almost 12 months after rumours emerged that Japanese banks could be set to push into the Australian mortgage market, the foreign lenders continue to remain hush hush on the subject.
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In January this year, it was speculated that as many as four Japanese banks could be set to open branches on Australian soil.
While some industry spectators dismissed the rumours as simply that, Yellow Brick Road’s Mark Bouris told journalists earlier this year that Japanese banks have the potential to snatch market share away from Australia’s lenders “quite quickly” and could potentially take “5 to 10 per cent of the market”.
According to Mr Bouris, at least three big banks, the $62 billion Mitsubishi UFJ Financial Group, $42 billion Sumitomo Mitsui Financial Group and $35 billion Mizuho Financial Group, are said to be considering operating on Australian shores.
While the banks Mr Bouris mentioned are yet to establish a presence here, in July this year Sony Bank revealed its intentions to break into the Australian lending market.
Speaking about its intentions earlier this year, a spokesperson for the bank said the lender planned to open an office in Sydney in late August and begin a feasibility study.
While the bank is currently surveying its options in Australia, it is still yet to make its mark on the Australian mortgage market.
And, according to a recent board meeting, it is unlikely to do so any time.
At its August board meeting, the lender confirmed there were “no particular upsides” associated with entering the Australia market at the present time.
“Our representative office in Australia is continuing to survey the situation and consider business opportunities there. We see no particular upsides at present,” a spokesperson for the lender said.
