Globalization of Japanese Banks in Global Syndicated Credit Markets: A Geo-relational Approach

Using a geo-relational framework, the paper has examined how the geography of Japanese banks’ globalization has been shaped by dynamics of regional relational geometries. In so doing, the paper analyzes Japanese banks’ global operations through their relational dynamics vis-à-vis non-Japanese banks in processing syndicated credit transactions rather than documenting office networks or counting international assets. The research findings suggest that Japanese banks had to internationalize their operations to the US and Western Europe due to lack of market opportunities in home/regional markets. However, in US and Western European markets Japanese banks suffered from liability of foreignness because of sustained or reinforced competitiveness of US and Western European banks. In short, Japanese banks’ globalization is conditioned by geo-positionality of Japanese banks that is largely shaped by the geographies of existing market opportunities, and syndicate network structures that have facilitated the dominance of US and Western European banks. As a result, Japanese banks have played the role of fund suppliers under the dominance of US and Western European market-markers.