Continuing the move of Japanese banks to the growing Turkish market, Sumitomo Mitsui Financial Group has signed a cooperation agreement with Garanti Bankasi, it announced on February 12. The deal makes it the third large Japanese bank to to tie up with a Turkish lender in the last six months.
In a statement, Sumitomo Mitsui said it has agreed with Turkey's largest bank by market capital to cooperate on export credit agency financing and advice on project and structured finance, reports Bloomberg. The deal extends a trend that sees Japanese banks following companies from the country to Turkey as they join the global hunt for growth and yield amidst a poor market at home.
Japan's second-biggest bank by market value joins Mitsubishi UFJ Financial Group and Mizuho Financial Group in allying with Turkish lenders to capitalize on the country's credit demand. The three Tokyo-based mega-banks are seeking to boost lending abroad as persistent deflation discourages borrowing at home.
Mizuho signed an agreement with Akbank in September to provide services to Japanese companies operating and investing in Turkey. Bank of Tokyo-Mitsubishi UFJ unveiled an accord with Isbank in October, and in December won approval to set up a bank according to a decision by Turkish regulators.
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