SBI Holdings , sometimes referred to as Strategic Business Innovator Group , ( TYO : 8473 ) is a financial services company group based in Tokyo , Japan . The group's businesses and companies are held primarily at SBI Holdings .
16-422: Some of the most prominent subsidiaries are SBI Securities, SBI Shinsei Bank and SBI Investments. The company provides financial services in a wide range of categories, including securities, asset management, banking and insurance and has formed an Internet-based financial conglomerate. The group also has a biotechnology -related business line which develops cosmetics, health foods and drug discovery. Furthermore,
32-825: A "defect warranty provision" ( 瑕疵担保条項 , kashi tanpo jōkō ) to the effect that Shinsei could demand within the next three years that the government purchase any claims which had fallen by twenty percent or more from book value. A similar provision was afforded Aozora Bank , the successor of LTCB's similarly beleaguered sister company Nippon Credit Bank . LTCB was relaunched as "Shinsei Bank" (literally "Newborn" or "New Life" Bank) in June 2000, with new management and services. Many of Shinsei's managers had previous experience working for foreign financial institutions in Japan, such as CEO Thierry Porte (formerly of Morgan Stanley) and CIO Jay Dvivedi (formerly of Citibank). Shinsei continued to use
48-561: A broad range of commercial lending and equity investment. The IB division is affiliated with four subsidiary companies: Shinsei Investment Management, Shinsei Securities, Shinsei Servicer and Shinsei Trust and Banking. Shinsei also does considerable investment business in Europe through subsidiaries in London and Frankfurt . Shinsei operates many of its services in this field through its subsidiaries APLUS (consumer finance), Shinki (owner of
64-631: A government monopoly on the issuance of many long-term debt securities. Following the collapse of the Japanese asset price bubble in 1989, the bank was riddled with bad debts: the government nationalized it in 1998, and it was delisted from the Tokyo Stock Exchange . After several proposed mergers with domestic banks, LTCB was sold to an international group led by US-based Ripplewood Holdings in March 2000 for ¥121 billion ($ 1.2 billion U.S.),
80-555: Is a leading diversified Japanese financial institution that provides a full range of financial products and services to both institutional and individual customers. It is owned by SBI Group and headquartered in Chuo , Tokyo . It results from the 2000 rebranding of the former Long-Term Credit Bank of Japan , under new ownership. SBI Shinsei Bank is the successor of the Long-Term Credit Bank of Japan (LTCB), which had
96-605: Is to sustainably increase the corporate value and social value of the SBI Group through self-evolution and co-creation of value with a wide range of companies". In 2019, SBI Holdings announced its plans to create a 4th Japanese megabank by consolidating several Japanese regional banks (up to 10) into the group and connecting them to SBI's technological pool. SBI Shinsei Bank Katsuya Kawashima (Representative Director, President & CEO) SBI Shinsei Bank, Limited ( 株式会社SBI新生銀行 , Kabushiki-gaisha SBI Shinsei Ginkō )
112-586: The subprime crisis in the United States. Shinsei moved its headquarters to the Nihombashi area of Chuo City in January 2011. Shinsei Bank divides its business into three components: retail banking, institutional banking and consumer/commercial finance. Shinsei offers a number of unique services as part of its basic "PowerFlex" savings account, including: The Shinsei banking system is based on
128-505: The FLEXCUBE software developed by Oracle Financial Services Software Ltd. Formerly i-flex solutions . Shinsei also gears many of its services toward resident foreigners in Japan, with English-language online banking and telephone support, as well as no requirement for a personal seal in order to open an account. Shinsei combines its commercial and investment banking operations into an "Institutional Banking" division which engages in
144-623: The Long-Term Credit Bank SWIFT code (LTCBJPJT). SBI Shinsei used the defect warranty provision to dispose of all the worst debts owed to the bank. Several companies which had used LTCB as their primary bank went bankrupt as a result, including Sogo (July, 2000) and the Dai-Ichi Hotel . This created a furor in Japan: politicians especially criticized Goldman Sachs , which advised on the sale of LTCB, for not warning
160-745: The Softbank group. The company was listed on the Osaka Stock exchange in December 2000 and subsequently on the Tokyo Stock Exchange in 2002. The SBI Group became completely independent from Softbank in 2006. The Financial Services Business is based on an Internet-based financial ecosystem, and undertakes a broad range of financial services, including securities, banking and insurance. At the Asset Management Business,
176-508: The first time in history that a Japanese bank came under foreign control. Investor Christopher Flowers also played a major role in the buyout syndicate and remained a key shareholder of the company until August 2019, when the Japanese government acquired the shares held by his fund. As part of the deal, the Japanese government insisted that LTCB maintain existing loan accounts for at least three years. The final purchase agreement included
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#1732791179878192-474: The government of the risks inherent in the defect security provision. SBI Shinsei then raised ¥230 billion in an IPO on February 20, 2004. The purchase of Shinsei thus turned a profit of over ¥100 billion within four years. The success of the IPO intensified criticism of Shinsei, however: the government was estimated to have lost ¥4-5 trillion on the deal between lost investments and forced purchases of bad debt, and
208-690: The group conducts investments into and incubation of startup companies, and through the biotechnology-related business, it undertakes the R&;D and manufacturing of pharmaceuticals, health foods and other products. The company stated in its 2020 annual report that it would pursue business growth by actively promoting the Open Alliance initiative. This involves developing win-win relationships with companies that have advanced technologies in areas such as fintech, AI, blockchain, and quantum computing, along with companies in different industries. The company's goal
224-418: The group operates the business school SBI Graduate School . SBI is listed on the first section of the Tokyo Stock Exchange and Osaka Securities Exchange . In 2022, the company entered into a comprehensive capital and business alliance with Sumitomo Mitsui Financial Group (SMFG) (commonly known as the "SMBC-SBI Alliance"), and received investment from SMFG. Founded in 1999, the company was initially part of
240-405: The profits from the deal even escaped Japanese taxation through the use of a foreign investment partnership. In April 2004, the bank exchanged its long-term credit banking license for a standard commercial banking license. The Financial Services Agency issued an improvement order to Shinsei on June 29, 2007, after the revenues of the company fell dramatically below targets. On April 25, 2009, it
256-615: Was announced that Shinsei Bank and Aozora Bank have entered into negotiations to integrate their operations in the summer of 2010, with an eye toward an eventual merger, however the talks collapsed in May 2010 amid disputes over capitalization and business strategy, as well as the abatement of the 2008 financial crisis. In 2010, the bank sold its headquarters building near Hibiya Park and its operations center in Meguro in order to avoid falling below targets again due to investment writedowns during
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