Three large banks of Japan – Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp., Mizuho Bank – and the Development Bank of Japan will form a 200 billion yen ($1.91 billion) fund to help foundering companies get back on their feet. This will be the country’s largest such venture since the global financial crisis. Contributions will also be solicited from domestic institutional investors such as regional banks, insurers and pension funds with the aim of reaching the target amount in a year. The fund will be managed by Japan Industrial Solutions, a joint venture formed in 2010 by the banks and the DBJ, among others. Targets will consist mainly of publicly traded companies with which the DBJ or megabanks do business. The fund will look for businesses that are struggling but have enough technological prowess or brand power to have good prospects for recovery.
