Daiwa Bank announced Friday that its trust banking unit has obtained a formal license from the Financial Services Agency.
Daiwa Trust & Banking Co., established on Dec. 10, is scheduled to open for business on March 1 after Daiwa Bank transfers its pension and corporate-asset trust banking divisions to it.
The new trust bank, currently a wholly owned subsidiary of Daiwa Bank, will become a wholly owned unit of Daiwa Bank Holdings Inc. by March 1. Daiwa Bank Holdings was launched on Dec. 12 by Daiwa Bank, Kinki Osaka Bank and Nara Bank.
Daiwa trust's capital will be raised to 10 billion yen from the current 2 billion yen by March 1, a bank spokesman said.
Bank's ratings dip
Moody's Investors Service Inc. said Friday it has lowered Shoko Chukin Bank's long-term deposit and unsecured debt rating to A1 from Aa3, maintaining a negative outlook.
Moody's did not review the state-run bank's short-term Prime-1 rating or E-plus bank financial strength rating, the U.S. credit-rating agency said in a news release.
The downgrade primarily reflects the strong linkage of Shoko Chukin's credit profile to the Japanese government bonds rating as a state-run financial institution.
On Dec. 4, Moody's lowered the rating of Japanese government bonds to Aa3 from Aa2, making Japan's the lowest, along with Italy's, among the Group of Seven major industrialized nations.