The Mitsubishi Tokyo Financial Group (MTFG), the holding company of The Bank of Tokyo-Mitsubishi (BTM) and The Mitsubishi Trust and Banking Corporation (MTB) will from April next year operate through a series of integrated business groups. “The move is to seek further synergy and efficiency across the Group companies by consolidation and integration of the group management,” explains a spokesman for BTM in Tokyo. “The new system will allow integrated management of Group businesses, as unified strategies for the Group will be decided at the holding company and then implemented at Group banks.”
MTFG is currently engaged in reshaping the business model of the entire group, with a view not only to offering customers more comprehensive services, but improving the speed and consistency of decision making, increasing the efficient cy with which resources are allocated, raising profitability and competitiveness, and maximizing e shareholder value. The management believes these aims can best be achieved by creating a structure in which strategic decisions are made on an integrated basis for the whole Group by the MTFG Executive Committee, while being implemented by Group banks.
Retail banking, corporate banking, and trust assets (asset management, administration operations and custody services) will be positioned as the three core consolidated operating and profit generating businesses, and three new business groups will be established: the Integrated Retail Banking Business Group, the Integrated Corporate Banking Business Group, and the Integrated Trust Assets Business Group.
MTFG and Group banks will be managed through a ‘three in one’ structure. Each MTFG Integrated Business Group will include the BTM and MTBC business units and divisions pertaining to the operations of the business group (including those of related subsidiaries and affiliated companies). As the holding company’s organization, MTFG will hold the head and deputy head of each Integrated Business Group, and will establish and staff support divisions. The head and deputy head of each Integrated Business Group will concurrently serve as heads of related business units of Group banks. Moreover, although each MTFG division will be constructed from employees delegated from subsidiary banks, these employees will concurrently serve in related divisions of the subsidiary banks, in the expectation this can help maintain the smooth execution of operations.
Business planning and operations management functions will be retained at the minimum necessary level for each business in Group banks, and streamlined by concentrating their functions and location within the Integrated Business Groups.
Three temporary preparation teams will start work on implementing the new organisation on 5 January 2004.