Marubeni enters Manila

Marubeni enters Manila

TOKYO (AFP): Japanese trading house Marubeni Corp. is considering entering the banking business in the Philippines by setting up a savings and loan association in a joint venture with a local conglomerate next month, officials said yesterday.

The Nihon Kogyo Shimbun, quoting financial sources, reported that operations would start in early 1998.

The move takes advantage of Japan's foreign exchange deregulation to be implemented from next April, which has effectively prevented a non-financial firm's direct advance into offshore banking, the industrial daily reported.

Marubeni plans to launch the venture with Prudential Insurance, controlled by the Coyuto family, the paper said.

A company spokesman declined to elaborate on the plan, saying: "Nothing disclosable has been decided."

The venture will have an initial capital of about 300 million pesos (US$9.6 million). The Japanese trader will own 40 percent with Prudential holding the balance, the paper said.