ЯПОНСКИЕ БАНКИ НА РОССИЙСКОМ РЫНКЕ

Abstract

The paper focuses on entry cases of Japanese banks into Russia’s market by investigating the history of foreign entry, entry modes, and motivation for entry. By empirically examining the relevant cases, we demonstrate that the foreign entry of Japanese banks into Russia’s market was implemented in several stages starting from the 1992 and was mostly motivated by “follow the customer approach.” During the initial stages of entry, Japanese banks actively applied the “organic growth strategy” and established representative offices in Russia that were later transformed into domestic subsidiaries (Russia’s domestic juridical entities with Japanese capital participation). The paper also highlights the fact that the motivation for entry and entry modes of Japanese banks in Russia are subject to change over time. The analysis of activities of banks with Japanese capital participation of more than 50% reveals that starting from 2006, Japanese banks preferred the brownfield type of investments and acquired a few Russian banks in order to minimize costs of entry and other transaction costs. The detailed examination of the ultimate owners of banks with foreign capital participation allowed to identify the fact that Japanese banking FDI is directed to Russia via third countries such as Germany and the Netherlands. In addition, we defined the following segments of Russia’s banking market where banks with Japanese capital participation operate: support of Japanese companies and their affiliated businesses in Russia, financial services procurement to large Russian companies and banks, retail business (automobile credits), and internet-banking. Despite the fact that the activities of banks with Russian capital participation remain rather limited, recent agreements on further promotion of Japan-Russia economic cooperation leave a window of opportunity for Japanese banks to increase the scope of their activities in Russia. In fact, some banks already demonstrate growing interests to financing small and medium enterprises in Russia.