Organizational Revision of SMBC(1/1)
Sumitomo Mitsui Banking Corporation
Organizational Revision of SMBC
The objectives of the organizational revision are to further fortify risk management, credit control and other functions, and improve the efficiency of business promotion framework in order to respond quickly and appropriately to changes in the increasingly uncertain business environment.
Specifics of the organizational revision are as follows:
1. Fortification of Headquarters Functions
(1) Establishment of Risk Management Unit
A new Risk Management Unit will be established to manage various risks in a more integrated manner amid the current business uncertainty. The risk management framework will be strengthened by consolidating the functions for managing major risks for financial institutions – market, liquidity, credit and operational risk – into the Risk Management Unit and enhancing our across-the-board risk monitoring ability.
Specifically, a director will be assigned to oversee the Risk Management Unit comprising the Corporate Risk Management Dept. and Credit & Investment Planning Dept. The Corporate Risk Management Dept. will be the unit’s planning department and the Operational Risk Management Dept., which is currently within the General Affairs Dept., will become a department within the Corporate Risk Management Dept.
(2) Reorganization of functions within Internal Audit Unit
The functions within the Internal Audit Unit will be reorganized and the functions related to auditing the risk management framework will be consolidated into the Internal Audit Dept. in order to enhance our ability to deal with multiple risks including credit risk. Accordingly, the Internal Audit Planning Dept. within the Internal Audit Dept. will be dissolved.
(3) Enhancement of IT planning support functions
A new IT Business Promotion Dept. will be established within the Corporate Staff Unit in order to strengthen IT planning support and staff training.
2. Fortification of Business Units’ Functions
(1) Reorganization and fortification of business promotion supporting and other functions
(i) Reviewing of business promotion system for corporations
In order to realize more in-depth support for our corporate customers, a new Business Promotion & Solution Dept. will be established, into which the Middle Market Solution Dept. within the Planning Dept., Corporate Banking Unit & Middle Market Banking Unit will be merged and the functions of business promotion and support for middle market customers that are currently carried out by the Planning Dept., Corporate Banking Unit & Middle Market Banking Unit and Small and Medium Enterprises Marketing Dept. will be consolidated.
A new Credit Business Dept. within the Credit Administration Dept. will also be established in connection with the partial restructuring of the front-office structure of the Corporate Business Offices of the Middle Market Banking Unit.
(ii) Integration of International Business Promotion Dept. into Global Advisory Dept.
The International Business Promotion Dept. will be integrated into the Global Advisory Dept. in order to enhance the efficiency of our business operations and strengthen our ability to support our business promotion channels and customers’ overseas businesses.
(iii) Merger of Succession Business Dept. and Private Banking Dept.
The Succession Business Dept. and Private Banking Dept. will be merged into a new Private Advisory Business Dept. in order to enhance our ability to respond to the needs of individuals and corporate customers when they overlap, such as the needs of business owners.
(2) Reorganization of Consumer Banking Unit
A new Consumer Compliance Dept. will be established within the Planning Dept., of the Consumer Banking Unit in order to enhance the functions related to customer satisfaction and consumer compliance.
(3) Reorganization of Investment Banking Unit
(i) Integration of Investment Development Dept. into Merchant Banking Dept.
The Investment Development Dept. will be integrated into the Merchant Banking Dept. in order to consolidate fund investment resources and know-how and enhance expertise in order to quickly and proactively respond to changes in the market environment.
(ii) Enhancement of Trust Services
The Trust Services Dept. within the Corporate Services Unit will become a department within the Investment Banking Unit, and the Stock Execution Dept. within the Private Banking Dept. will become a department within the Trust Services Dept. in order to further improve the quality of our trust products and services.
(iii) Enhancement of R&D Dept. Functions
The asset management related functions of the Investment Banking Unit will be consolidated into the R&D Dept., a department within the Planning Dept. of the Investment Banking Unit, and renamed “Strategic Products Dept.” in order to enhance our ability to develop and offer investment management products.
(4) Revision of International Banking Unit
The functions of the Credit Management Dept. will be
strengthened and the Environment Analysis Dept. within the Credit Dept. will
become a department within the Credit Management Dept. in order to enhance our credit
risk management on a global basis. Accordingly, the Credit Dept. will be