The Dai-Ichi Bank ( Japanese : 第一銀行 , lit. ' First Bank ' ), known from its establishment in 1873 to 1896 as Dai-Ichi Kokuritsu Bank ( lit. ' First National Bank ' ) was a major Japanese bank headquartered in Tokyo . Founded and developed for several decades by Shibusawa Eiichi , it expanded into Korea as early as 1878, and became that country's dominant bank as well as its bank of issue in the early 1900s, before handing over that role to the newly established Bank of Chōsen in 1909. It remained one of the main Japanese banks together with Mitsubishi Bank , Mitsui Bank , Sumitomo Bank , and Yasuda / Fuji Bank .
59-524: In 1943, Dai-Ichi Bank merged with Mitsui Bank to form Teikoku Bank ( Japanese : 帝国銀行 , lit. ' Imperial Bank ' ). In 1948, Dai-Ichi Bank was spun off again from Teikoku, which retook the Mitsui name in 1954. In 1971, it merged with Nippon Kangyo Bank to form the Dai-Ichi Kangyo Bank , subsequently Japan's largest bank and a predecessor to Mizuho Financial Group . In 1872,
118-755: A German adviser to the Korean royal court, negotiated a $ 24,000 loan (denominated in Mexican silver dollars ) from Dai-Ichi National Bank to finance the setup costs of the Korean Customs Service, which was collateralized with future tariff revenue. That same year, Dai-Ichi Bank received permission from the Japanese government that its bills be used to pay for customs duties in Korea's open ports. In February 1884, Dai-ichi Bank and von Möllendorff agreed that
177-420: A complementary base of larger institutional clients. The merger was aimed at leveraging these synergies, as well as providing stronger competition against European banks, which were expected to consolidate following a deregulation in 1992. Bank of Japan The Bank of Japan ( 日本銀行 , Nippon Ginkō , BOJ ) is the central bank of Japan . The bank is often called Nichigin ( 日銀 ) for short. It
236-595: A limited company (capital stock: ¥20 million) in 1909. By 1929, Mitsui Bank had 6 offices outside of Japan and its colonies, including in London and New York . That was more than Mitsubishi Bank and Yasuda Bank, though less than Sumitomo Bank let alone the Yokohama Specie Bank , Bank of Chōsen and Bank of Taiwan , for which foreign trade was part of a public-interest mandate under special legislation. World War II led Mitsui Bank to distance itself from
295-648: A money changer. Mitsui Bank was established as a private company in July 1876, with capital of two million yen. It was one of the Japanese government's main banks for deposits and tax collections until the formation of the Bank of Japan in 1882. In ensuing decades, the Mitsui family took over numerous government industrial plants to form a major zaibatsu conglomerate, with the bank as one of its core businesses. Mitsui Bank reorganized as an unlimited partnership in 1893, and as
354-570: A new quantitative easing program (QE). This program would be very large in terms of quantity, but it would also be different in terms of quality—qualitative easing (QQE). In other words, the BOJ would (and did) also purchase riskier assets like stocks and REITs. In 2016, the BOJ initiated yield curve control (YCC), and started its negative interest rates policy (NIRP). The BOJ is also the largest owner of Japanese stocks. In 2024, following announcements of about 5% wage growth by Japan's largest companies,
413-524: A rather closed economy to a large open economy with a variable exchange rate. During the entire post-war era, until at least 1991, the Bank of Japan's monetary policy has primarily been conducted via its ' window guidance ' (窓口指導) credit controls (which are the model for the Chinese central bank's primary tool of monetary policy implementation), whereby the central bank would impose bank credit growth quotas on
472-553: A year later. The Japan–Korea Treaty of 1876 opened a period during which Japan enjoyed a near-monopoly on Korea's overseas trade, as the country's trade with Japan expanded dramatically while its trade with China collapsed. Dai-Ichi rapidly seized that opportunity and secured a dominant position in the country’s financial sector, thanks to Japanese Finance Ministry protection. It opened a first Korean branch in Busan in June 1878, for which
531-529: Is headquartered in Nihonbashi , Chūō , Tokyo . The bank is a corporate entity independent of the Japanese government , and while it is not an administrative organisation of the state , its monetary policy falls within the scope of administration. From a macroeconomic perspective , long-term stability of prices is deemed crucial. However, the political sector tends to favour short-term measures. Thus,
590-408: The Bank of Chōsen in 1911. It was the direct predecessor of today's Bank of Korea . Overall, Dai-Ichi Bank's actions in the three decades following its first Busan establishment in 1878 have led to its depiction as the "primary agent of Japanese financial imperialism" in Korea. In Japan, Dai-Ichi and all other national banks were stripped of their banknote issuance privilege in 1883, shortly after
649-538: The Japan–Korea Treaty of 1905 which reduced the Korean Empire to a Japanese protectorate, the dominant status of Dai-Ichi Bank in Korea became a matter of renewed debate, this time among Japanese. In August 1907, Japan's Resident-General Itō Hirobumi and Shibusawa agreed that Dai-Ichi's operations should be eventually transferred to a dedicated central bank for the territory. A debate ensued between Itō and
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#1732780881974708-602: The Mitsui and Ōno merchant families created the Mitsui-Ōno Joint Bank as a joint venture between their respective financial operations. To manage it, they hired Shibusawa Eiichi, until then an official at the Ministry of Finance where he had drafter the National Banking Decree of December 1872 under the leadership of minister Ōkubo Toshimichi . In 1873, with the decree's entry into force allowing
767-498: The konjac powder mixed in the paper to prevent counterfeiting made the bills a delicacy for rats—the run was largely successful. In 1897, Japan joined the gold standard , and in 1899 the former "national" banknotes were formally phased out. Since its Meiji era beginnings, the Bank of Japan has operated continuously from main offices in Tokyo and Osaka. The Bank of Japan was reorganized in 1942 (fully only after 1 May 1942), under
826-462: The yen as the new decimal currency, which had parity with the Mexican silver dollar. The former han (fiefs) became prefectures and their mints became private chartered banks which, however, initially retained the right to print money. For a time both the central government and these so-called national banks issued money. A period of unanticipated consequences was ended when the Bank of Japan
885-831: The BOJ cut the official bank rate from 5% to 4.5% in January, to 4.0% in March, to 3.5% in April, 3.0% in November. At the same time, the government tried to raise demand in Japan in 1985, and did economy policy in 1986. However, the market was confused about the rapid fall of USD. After the Louvre Accord in February 1987, the BOJ decreased the official bank rate from 3% to 2.5%, but JPY/USD was 140yen/$ at that time and reached 125yen/$ in
944-464: The BOJ ended eight year of negative interest rates by setting new short term targets of 0 to 0.1%. Following the election of Prime Minister Shinzō Abe in December 2012, the Bank of Japan, with Abe's urging, took proactive steps to curb deflation in Japan. On 30 October 2012, the Bank of Japan announced that it would undertake further monetary-easing action for the second time in a month. Under
1003-469: The Bank of Japan (BOJ) could have appreciated the currency in order to avoid inflation. However, they still kept the fixed exchange rate as 360Yen/$ for two weeks, so it caused excess liquidity. In addition, they persisted with the Smithsonian rate (308Yen/$ ), and continued monetary easing until 1973. This created a greater-than-10% inflation rate at that time. In order to control stagflation, they raised
1062-530: The Bank of Japan Act in 1998 clearly defined the objectives of the Bank of Japan as 'price stability' and 'financial system stability'. This revision affirmed the Bank's operation independent from the government (primarily the Ministry of Finance ), and removed the provisions established in 1942, which had been problematic. The 1942 provision, enacted during the Second World War, stated the objective of
1121-462: The Bank of Japan Act of 1942 ( 日本銀行法 昭和17年法律第67号 ) , promulgated on 24 February 1942. There was a brief post-war period during the Occupation of Japan when the bank's functions were suspended, and military currency was issued. In 1949, the bank was again restructured. In the 1970s, the bank's operating environment evolved along with the transition from a fixed foreign currency exchange rate and
1180-533: The Bank of Japan has been criticized for already possessing excessive independence and lacking in accountability before this law was promulgated. A certain degree of dependence might be said to be enshrined in the new Law, article 4 of which states: However, since the introduction of the new law, the Bank of Japan has rebuffed government requests to stimulate the economy. When the Nixon shock happened in August 1971,
1239-527: The Japanese finance ministry, with the latter favoring the creation of a Korean branch of the Bank of Japan over that of a stand-alone colonial institution over which Tokyo would have less direct control. Eventually Itō's position won the debate, and the finance ministry rationalized the decision as preferable to preserve financial stability. The new institution, originally named the Bank of Korea ( Japanese : 韓國銀行 , romanized : Kankoku Ginkō , Korean : 한국은행 , romanized : Hanguk Eunhaeng ),
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#17327808819741298-543: The Japanese government lent it half of the 100,000 yen needed for start-up expenses. This episode has been described as the starting point both of Japanese-Korean financial relations and of modern banking in Korea. Further branches followed in Wonsan (May 1880), Incheon (November 1882), Seoul (1888), Mokpo (1898), and Chinnampo and Gunsan (1903). Tariffs were not specified in the 1876 treaty and were only agreed upon in 1883. On that occasion Paul Georg von Möllendorff ,
1357-470: The Japanese yen became stronger. JPY/USD reached 80yen/$ , so the BOJ reduced the office bank rate to 0.5% and the yen recovered. The period of deflation started at that time. In 1999, the BOJ started zero-interest-rate policy (ZIRP), but they ended it despite government opposition when the IT bubble happened in 2000. However, Japan's economic bubble burst in 2001 and the BOJ adopted the balance of current account as
1416-416: The Korean authorities conceded unlimited circulation of Dai-Ichi banknotes in exchange for another loan, which practically designated Dai-Ichi Bank as the central bank of the Korean Empire. Dai-Ichi's banknote issuance expanded rapidly, from a total under 5 million years over the three years 1902–1904 to over 8 million in 1905 alone, then gradually increasing to reach nearly 12 million yen in 1909. Following
1475-538: The Mitsui zaibatsu beginning around 1937, as the bank's large balance of loans to munitions manufacturers made it vulnerable to failure should a recession occur after the war. The solution found by Mitsui's chairman was to merge the bank with the Dai-Ichi Bank , creating a much larger institution outside the Mitsui family's control. In April 1943, Mitsui Bank merged with Dai-Ichi to form Teikoku Bank. Teikoku almost immediately found itself short of funds, and for
1534-495: The Policy Board and held every other month. Stable prices are maintained by seeking to ensure that price increases meet the inflation target. The bank aims to meet this target primarily by adjusting the base interest rate (known as the bank rate ), which is decided by the Policy Board. As of 2024 the inflation target is 2%. Japan has long suffered deflation and disinflation since the 1990s, which has been blamed as one of
1593-710: The Tokyo and Osaka stock exchanges in May 1949 and changed its name back to Mitsui Bank in January 1954. Mitsui Bank merged with Toto Bank in April 1968. Around 1960, Mitsui Bank and its general trading company partner Mitsui & Co. formed a horizontal keiretsu alliance between other companies descended from the Mitsui conglomerate, including Toyota , Toshiba , Toyo Menka Kaisha , Ishikawajima-Harima Heavy Industries , Showa Aircraft and Oji Paper . Mitsui established The Mitsui Bank of California in Los Angeles in 1974, and acquired Manufacturers Bank in 1981, merging
1652-766: The bank was to 'Ensure the Appropriate Exertion of the Nation's Total Economic Power, by Regulating Currency, Adjusting Finance, and Maintaining and Fostering the Credit System in Accordance with the Policies of the State (国家経済総力ノ適切ナル発揮ヲ図ル為国家ノ政策ニ即シ通貨ノ調節、金融ノ調整及信用制度ノ保持育成ニ任ズル。)'. BoJ's policies are decided at Monetary Policy Meetings ( MPM , Kinyu Seisaku Kettei Kaigo , 金融政策決定会合 ), which are attended by
1711-641: The bank's autonomy and independence are granted from the standpoint of ensuring long-term public welfare and political neutrality. Like most modern Japanese institutions, the Bank of Japan was founded after the Meiji Restoration . Prior to the Restoration, Japan's feudal fiefs all issued their own money, hansatsu , in an array of incompatible denominations, but the New Currency Act of Meiji 4 (1871) did away with these and established
1770-479: The bank's branches would collect all local customs duties on behalf of the Joseon dynasty government. Dai-Ichi Bank's $ 24,000 loan to the Korean government was disbursed simultaneously; it was followed by a second loan in January 1895 and a third in March 1900. In May 1886, Dai-Ichi Bank secured funding from the newly established Bank of Japan to collect gold and silver in Korea for the benefit of Japan, which at
1829-606: The bank's business. At the turn of the century, Dai-Ichi Bank started to issue sight bills to facilitate its collection of customs duties, and in October 1901 applied for permission from the Japanese Finance Ministry for its Korean branches to issue yen-denominated banknotes, which the ministry granted in May 1902. Meanwhile, Dai-Ichi Bank remained the dominant financier of the Korean government, despite Emperor Gojong 's attempt to foster an alternative system with
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1888-428: The commercial banks. The tool was instrumental in the creation of the 'bubble economy' of the 1980s. It was implemented by the Bank of Japan's then "Business Department" (営業局), which was headed during the "bubble years" from 1986 to 1989 by Toshihiko Fukui (who became deputy governor in the 1990s and governor in 2003). A major 1997 revision of the Bank of Japan Act was designed to give it greater independence; however,
1947-521: The difference in corporate culture between them. As a result of deteriorating performance, Teikoku Bank was divided into two banks, the new Dai-Ichi Bank and the new Teikoku Bank in 1948. Dai-Ichi grew dynamically in Japan's rapid postwar economic expansion, and eventually merged in 1971 with Nippon Kangyo Bank to form Dai-Ichi Kangyo Bank . Dai-Ichi Bank's first Korean branch was opened in 1878 in Chemulpo (now Incheon ). A proper branch building
2006-470: The embattled Korean state to resist Dai-Ichi's monetary role in Korea proved futile, and crumbled as the Russo-Japanese War resulted in the elimination of the last check against Japanese dominant influence in the country. In early 1903, officials in the Korean capital attempted to prohibit the use by Koreans of Dai-Ichi's banknotes, but had to rescind the order after a fortnight. In January 1905,
2065-472: The end of 1987. The BOJ kept the official bank rate at 2.5% until May in 1989. Financial and fiscal regulation led to a widespread over-valuing of real estate and investments and Japan faced a bubble at that time. After 1990, the stock market and real asset market fell. At that time BOJ regulated markets until 1991 in order to end the bubble. In January 1995, the Great Hanshin earthquake occurred and
2124-524: The establishment of the Bank of Japan. In 1943, Dai-ichi Bank and Mitsui Bank , a Mitsui zaibatsu company, merged to form Teikoku Bank (lit. Imperial Bank of Japan). Teikoku Bank was the largest bank in Japan in terms of assets when it was inaugurated. Teikoku Bank, however, could not expand its business freely due to Japan's involvement in World War II . Furthermore, former Dai-ichi employees and Mitsui employees did not get along well because of
2183-414: The financial crisis happened, and Japanese economy turned bad again. BOJ reduced the uncollateralized call rate to 0.3% and adopted the supplemental balance of current account policy. In December 2008, BOJ reduced uncollateralized call rate again to 0.1% and they started to buy Japanese Government Bond (JGB) along with commercial paper (CP) and corporate bonds. In 2013, the head of the BOJ (Kuroda) announced
2242-456: The foundation of Daehan Cheon-il Bank in early 1899. In the autumn of 1900, difficult loan negotiations with the Korean government required another trip to Korea by Shibusawa; Dai-Ichi Bank made more loans to the Korean Empire in the early 1900s. In total, the share of Korea in the bank's total loan book rose from 2 percent in 1879 to over 15 percent by in 1905, and its share of Dai-Ichi Bank's total profits reached 29 percent in 1905. Attempts by
2301-473: The gradual appearance of homegrown Korean banks such as Hanseong Bank , established in 1897. Instead, Dai-Ichi Bank played an increasingly central role in the reform of Korea's monetary system, for which the Korean government became acutely dependent on Japanese actions.. In mid-1898, Shibusawa traveled to Korea to negotiate the revocation of an earlier prohibition by the newly proclaimed Korean Empire of using stamped silver yen coins that had become important for
2360-411: The leadership of Shibusawa who had meanwhile built up a significant minority stake. Unlike most of Japan's early joint-stock banks who were fiercely local, Dai-Ichi also managed to attract equity investors from a wide geographical area. It simultaneously diversified its deposit base from an initial heavy reliance on public funds; these represented 70 percent of all deposits in late 1875, but only 20 percent
2419-469: The leadership of new Governor Haruhiko Kuroda , the Bank of Japan released a statement on 5 April 2013 announcing that it would be purchasing securities and bonds at a rate of 60-70 trillion yen a year in an attempt to double Japan's money base in two years. But by 2016, it was apparent that three years of monetary easing had had little effect on deflation so the Bank of Japan instigated a review of its monetary stimulus program. The comprehensive revision of
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2478-638: The licensing of privately owned banks of issue , Shibusawa reorganized the venture and obtained from the government a license to operate it as the first of all Japan's national banks , thus its original name Tokyo Dai-Ichi Kokuritsu Ginkō ( lit. ' First National Bank of Tokyo ' ) It was also the country's first joint-stock company or kabushiki gaisha . Dai-Ichi National Bank issued 753,195 yen in its own banknotes in 1873, and its banknote circulation peaked at over 1 million yen by mid-1874. After that, it struggled to maintain its notes in circulation because many of them were redeemed in specie . In 1875,
2537-471: The main causes of the long-term economic downturn of the once world's second largest economy. For the past two decades, the primary focus of BOJ policies has been to achieve a stable inflation. Financial system is defined as the overall structure of receipt and payment as well as lending and borrowing of money, and its stability refers to 'a state in which the financial system functions properly, and participants, such as firms and individuals, have confidence in
2596-417: The main operating target for the adjustment of the financial market in March 2001 (quantitative relaxation policy), shifting from the zero-interest-rate policy. From 2003 to 2004, Japanese government did exchange intervention operation in huge amount, and the economy recovered a lot. In March 2006, BOJ finished quantitative easing, and finished the zero-interest-rate policy in June and raised to 0.25%. In 2008,
2655-622: The meantime in Daegu , Hamhung , Kaesong , Kyongsong , Masan , Pyongyang , Songjin , and across the Yalu River in Andong . The transfer also included the new building initially planned by Dai-Ichi Bank for itself in Seoul, then still under construction and which became the Bank of Korea's head office . Following the Japan–Korea Treaty of 1910 and full annexation, the Bank of Korea was renamed
2714-439: The official bank rate from 7% to 9% and skyrocketing prices gradually ended in 1978. In 1979, when the energy crisis happened, the BOJ raised the official bank rate rapidly. The BOJ succeeded in a quick economic recovery. After overcoming the crisis, they reduced the official bank rate. In 1980, the BOJ reduced the official bank rate from 9.0% to 8.25% in August, to 7.25% in November, and to 5.5% in December in 1981. " Reaganomics "
2773-598: The regulations under which the bank was founded. In 1883, all national banks were stripped of their banknote issuance privilege, and the Bank of Japan was given a monopoly on controlling the money supply in 1884. Still, it would be another 20 years before all previously issued notes were retired. Following the passage of the Convertible Bank Note Regulations (May 1884), the Bank of Japan issued its first banknotes in 1885 ( Meiji 18 ). Despite some small glitches—for example, it turned out that
2832-487: The remainder of the war, mainly provided short-term financing, with long-term financing for its munitions manufacturing customers mostly provided by the Industrial Bank of Japan . Dai-Ichi and Mitsui had very different corporate cultures which led to friction between the two; the two banks never completely integrated, and in October 1948, Dai-Ichi Bank separated from Teikoku Bank. Teikoku Bank listed its shares on
2891-545: The system'. The aforementioned objectives are realised through the exertion of the functions mentioned below. Bank of Japan owns 4.7% of Japanese public stocks. Since 2020 it has owned more domestic stock than any other body. The Bank of Japan is headquartered in Nihonbashi , Chūō , Tokyo , on the site of a former gold mint (the Kinza) and, not coincidentally, near the famous Ginza district, whose name means "silver mint". The Neo-baroque Bank of Japan building in Tokyo
2950-504: The time still lacked sources of precious metals. Purchases of gold became an important component of Dai-Ichi Bank's Korean business, with yearly volumes fluctuating between 2,400 and 3,600 tons between 1901 and 1907. Towards the end of the 19th century, Dai-Ichi Bank's near-monopoly on banking activities in Korea had been eroded by the belated entry of other Japanese banks, such as the Eighteenth Bank from 1890 onwards, and also by
3009-399: The two later that year to form Mitsui Manufacturers Bank (renamed Manufacturers Bank in 1992). Mitsui Bank agreed to merge with Taiyo Kobe Bank in 1989. At the time (in the midst of the Japanese asset price bubble ), the merger was to create the second largest bank in the world behind Dai-Ichi Kangyo Bank . While TKB had a strong base of individual and small business customers, Mitsui had
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#17327808819743068-498: The Ōno family was bankrupted. Mitsui Hachirōemon became the bank's dominant shareholder, but he was unwilling to use it as a vehicle for his business strategy and was further annoyed by the forced transfer of his firm's iconic building to the Dai-Ichi Bank at the instigation of the Japanese government. By end-1876, the bank was still majority-owned by the Mitsui family but it was increasingly taking an independent course under
3127-400: Was a major Japanese bank from 1876 to 1990. The home bank of the Mitsui conglomerate, it was one of the largest Japanese banks for much of the 20th century, together with Dai-Ichi Bank , Mitsubishi Bank , Sumitomo Bank , and Yasuda / Fuji Bank . In 1943 it merged with Dai-Ichi Bank to form Teikoku Bank ( Japanese : 帝国銀行 , lit. ' Imperial Bank ' ). In 1948, Dai-Ichi Bank
3186-573: Was created by Japanese law of July 1909, largely modelled on the Bank of Taiwan (est. 1898) but with a greater role for Itō in its governance than in the Taiwanese precedent. Dai-Ichi Bank kept branches in Seoul and Busan but later in 1909 transferred all its other Korean branches and offices to the Bank of Korea, totalling 220 regular employees and 121 support staff, in Chinnampo, Gunsan, Incheon, Mokpo and Wonsan (see above) plus those established in
3245-741: Was designed by Tatsuno Kingo in 1896. The Osaka branch in Nakanoshima is sometimes considered as the structure which effectively symbolizes the bank as an institution. The governor of the Bank of Japan ( 総裁 , sōsai ) has considerable influence on the economic policy of the Japanese government . ( Ministry of Finance ) central banker Harvard University (Ministry of Finance) (Ministry of Finance) (Ministry of Finance) (Ministry of Finance) (Ministry of Finance) University of Chicago (M.A.) (Ministry of Finance) President of ADB University of Oxford (MPhil) Massachusetts Institute of Technology (PhD) As of 9 April 2023,
3304-639: Was erected there from 1887 to 1899, and after 1909 became the Incheon of the Bank of Chōsen , then after 1950 of the Bank of Korea . It then housed various government administrations before being repurposed in 2010 as the Incheon Open Port Museum . This Asian bank-related article is a stub . You can help Misplaced Pages by expanding it . This Japan -related article is a stub . You can help Misplaced Pages by expanding it . Mitsui Bank Mitsui Bank, Ltd. ( 三井銀行 , Mitsui Ginkō )
3363-558: Was founded in Meiji 15 (10 October 1882), under the Bank of Japan Act 1882 (27 June 1882), inspired primarily by the National Bank of Belgium (est. 1850) which was viewed as one of the best-designed European central banks of its era. Since then, the Bank of Japan has been partly privately owned. Its stock is traded over the counter, hence the stock number. A number of modifications based on other national banks were encompassed within
3422-519: Was in vogue in America and USD became strong. However, Japan tried to implement fiscal reconstruction at that time, so they did not stop their financial regulation. In 1985, the agreement of G5 nations, known as the Plaza Accord, USD slipped down and Yen/USD changed from 240yen/$ to 200yen/$ at the end of 1985. Even in 1986, USD continued to fall and reached 160yen/$ . In order to escape deflation,
3481-504: Was spun off again from Teikoku, which changed its name back to Mitsui Bank in 1954. In 1990, Mitsui Bank merged with Taiyo Kobe Bank to form Mitsui Taiyo Kobe Bank (MTKB), which was renamed Sakura Bank in April 1992 and was a predecessor entity of Sumitomo Mitsui Banking Corporation (SMBC). The Mitsui family began banking operations in 1683, when the Tokugawa Shogunate granted Mitsui Takatoshi permission to act as
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