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Resona to lend more to help small firms grow

JIJI

Major banking group Resona Holdings Inc. will concentrate more on lending to support the growth of small and midsize firms in line with the economic recovery, President Kazuhiro Higashi said in a recent interview.

“With the lending environment having changed substantially, the situation small companies face is effectively not bad,” Higashi said. “The point is whether we can provide funds when the economy is recovering.”

In addition to providing funds through flexible lending conditions, banks need to help the economy grow, Higashi said, indicating Resona plans to strengthen lending to support business growth.

Resona will create a committee next month for assisting business growth and reconstruction through the reorganization of a body that was set up directly under the bank’s president when temporary legislation to facilitate financing of small businesses was enacted, he said. The legislation expired in March.

“It is important for borrower companies to boost sales in order to strengthen their core businesses,” Higashi said.

Resona wants to find out how it can help firms expand sales channels or procure goods, he said.

Regarding the bank’s efforts to support the expansion of small Japanese businesses into other areas of Asia, he explained that the banking group is planning to send officials to Rizal Commercial Banking Corp., a Manila-based partner bank, in December.

The bank may also form alliances with accounting and law firms in Myanmar and Laos with the aim of supporting Japanese businesses in those countries, he said.