The Bank of Tokyo-Mitsubishi said Friday it has created a section tasked with overseeing strategies related to financing for small and midsize firms and with creating loan products targeting these firms.
The section comprises 300 employees and combines a range of credit-related functions. These include the examination of loan applications, lending and research on the credit market for small and midsize firms.
The bank previously entrusted these functions to a wide range of divisions.
The section will conduct transactions mainly with companies whose annual revenues are below 3 billion yen, according to the bank, the core unit of Mitsubishi Tokyo Financial Group Inc.
The bank said it will authorize 120 branch offices to provide loans without collateral to small and midsize firms, while raising the ceiling on these collateral-free loans to 50 million yen from the current 30 million yen.
In addition, BTM will delegate some applicant screening authority to these branches in an effort to shorten the applications procedure.
As a result, the procedure is expected to take a minimum of three days, well below the current seven to 10 days.
The bank also plans to prolong the period of repayment to five years from the current three years, it said.