Sanwa Bank Ltd

Sanwa Bank Ltd., Tokai Bank Ltd. and Asahi Bank Ltd. said they agreed to merge into what would become Japan's second-largest bank and the world's third largest. The presidents of the three banks will announce details of the merger at a press conference today. The banks said they would set up a holding company by April 2001. "We can combine [our] housing loans and consumer loans businesses and be more profitable," the banks said in a statement.

A merger among three Japanese banks to create the world's third-largest bank by assets broke down when Asahi Bank said it had decided to cancel the deal with Sanwa and Tokai banks. The withdrawal deals a direct blow to efforts to restructure Japan's debt-plagued banking sector as it wrestles with an overhang of bad loans from the "bubble" economy of the 1980s and confronts a new era of fast-growing online competition.

Sanwa Bank Ltd., Japan's fourth-largest lender, will stop extending loans to non-Japanese corporate customers overseas and close six of its 11 branches in the U.S. and Europe by March, the bank said. In the U.S., Sanwa plans to shutter all but its New York and Los Angeles branches. The bank will keep sales offices in Houston, Chicago and San Francisco. In Europe, it will keep its London, Brussels and Dusseldorf, Germany, branches.

Sanwa Bank Ltd., Tokai Bank Ltd. and Asahi Bank Ltd. said they agreed to merge into what would become Japan's second-largest bank and the world's third largest. The presidents of the three banks will announce details of the merger at a press conference today. The banks said they would set up a holding company by April 2001. "We can combine [our] housing loans and consumer loans businesses and be more profitable," the banks said in a statement.

Sanwa Bank California is experiencing such a slowdown in business loans that earnings could fall about 15% below the Japanese-owned bank's target, the company told its managers in a recent memo obtained by The Times. The disclosure is further evidence that commercial lending in California is slowing amid a cooling off of the state's economy and tighter lending practices that some have attributed to tougher reviews by regulators.

In the latest surprise to hit the U.S. government securities market, Sanwa Bank Ltd. said Tuesday that it replaced three top officials at its New York bond trading subsidiary. Coming amid a widening federal investigation of dealings in the Treasury market, the abrupt move prompted intense speculation on Wall Street that the changes might be linked to the inquiries.

Fleet Financial Group Inc. agreed to buy Sanwa Bank Ltd.'s U.S. finance company for more than $700 million, three people familiar with the transaction said. Boston-based Fleet, New England's biggest bank, is expected to make an announcement Monday. Sanwa Business Credit has $6.5 billion in assets and earned $61 million last year. Sanwa, Japan's fourth-largest bank, bought the company, formerly Continental Illinois Leasing Co.

Fleet Financial Group Inc. agreed to buy Sanwa Bank Ltd.'s U.S. finance company for more than $700 million, three people familiar with the transaction said. Boston-based Fleet, New England's biggest bank, is expected to make an announcement Monday. Sanwa Business Credit has $6.5 billion in assets and earned $61 million last year. Sanwa, Japan's fourth-largest bank, bought the company, formerly Continental Illinois Leasing Co.

Fleet Financial Corp. is close to buying Sanwa Bank's U.S. commercial finance operations for up to $750 million in a move to broaden its geographical reach, sources said. The Boston-based banking company seeks to buy Sanwa Business Credit, a Chicago-based unit of Japan's Sanwa that provides equipment leasing and secured loans, the sources said, adding an agreement could be announced over the weekend. Officials at Fleet and Sanwa declined to comment.

Sanwa Bank Ltd., Japan's fourth-largest lender, will stop extending loans to non-Japanese corporate customers overseas and close six of its 11 branches in the U.S. and Europe by March, the bank said. In the U.S., Sanwa plans to shutter all but its New York and Los Angeles branches. The bank will keep sales offices in Houston, Chicago and San Francisco. In Europe, it will keep its London, Brussels and Dusseldorf, Germany, branches.

Japan's Sanwa Bank Ltd. wants to increase its presence in California by buying a big bank with hundreds of branches, a top executive said in an interview. "That is our ultimate target," Masahiro Yoda, a Sanwa managing director, said in an interview with Reuters. Yoda said Sanwa, the world's fourth-biggest banking company, would like to triple its assets in the state to about $20 billion and have 500 branches, compared to about 100 now.

Japan's Sanwa Bank Ltd. wants to increase its presence in California by buying a big bank with hundreds of branches, a top executive said in an interview. "That is our ultimate target," Masahiro Yoda, a Sanwa managing director, said in an interview with Reuters. Yoda said Sanwa, the world's fourth-biggest banking company, would like to triple its assets in the state to about $20 billion and have 500 branches, compared to about 100 now.

Japanese banks are expanding their efforts to win domestic business in Britain at a time competition for lending to large corporations is intensifying. Growing interest within Britain's business community in borrowing from Japan--the world's largest creditor nation--has helped the banks build up their British lending business.

In the latest surprise to hit the U.S. government securities market, Sanwa Bank Ltd. said Tuesday that it replaced three top officials at its New York bond trading subsidiary. Coming amid a widening federal investigation of dealings in the Treasury market, the abrupt move prompted intense speculation on Wall Street that the changes might be linked to the inquiries.

Sanwa Bank California is experiencing such a slowdown in business loans that earnings could fall about 15% below the Japanese-owned bank's target, the company told its managers in a recent memo obtained by The Times. The disclosure is further evidence that commercial lending in California is slowing amid a cooling off of the state's economy and tighter lending practices that some have attributed to tougher reviews by regulators.