Goldman Sachs exits Japan transaction banking in sudden reversal

GOLDMAN Sachs Group is exiting transaction banking in Japan, lower than a 12 months after asserting plans to enter the enterprise of managing money flows for giant corporations within the nation.

“We are stepping back from building out this business here in Japan,” Tokyo-based spokesperson Hiroko Matsumoto stated in an emailed assertion. “Consequently we are closing Goldman Sachs Bank USA Tokyo Branch whose sole function was to support transaction banking in this market.”

The financial institution will stay targeted on rising its transaction banking operations within the US, UK and European Union, Matsumoto stated.

Chief govt officer David Solomon has been targeted on increasing the enterprise to generate regular charges. The Wall Street agency stated in April 2023 that it was planning to begin the service in Japan, the primary nation in Asia the place it will supply it. 

Goldman Sachs started the enterprise of dealing with cash for giant corporations within the US in 2020. It later launched it to the UK, Germany and the Netherlands, in a transfer to stability out extra unstable areas resembling buying and selling and funding banking. 

Its banking arm gained a licence in 2021 from Japan’s Financial Services Agency for company money administration operations. The firm has since begun providing providers together with greenback settlements for Japanese corporations abroad. BLOOMBERG