ABSTRACT
The factors behind the avid movement of Japanese houses to London and other parts of Europe are several, and include both business reasons and structural ones. Japanese commercial banks have emulated other Institutions in following their domestic clients abroad. Earlier waves of American banks, then British and Continental European ones, had set up foreign branches in the overseas markets where their main customers were establishing manufacturing and trading subsidiaries, having a relatively certain chance of business. The interest of Japanese houses in directly working with their biggest domestic customers abroad has been greatly augmented by the need to find new lending outlets. Reconstruction after World War II had been completed and most Japanese industries possessed very modern plants. The Department of Trade and Industry has also put such a clause into the new Financial Services bill which will regulate investment activities in the City.
