Japan's second largest bank Sumitomo Mitsui Banking Corporation, has signed a Memorandum of Understanding with Ireland, aimed at fostering business exchanges between the two countries.

The announcement follows the high-profile launch of SMBC Aviation Capital, the world’s fourth largest aircraft leasing business, in Dublin last week. The MoU was signed with IDA Ireland, the Irish government agency responsible for the attraction and development of foreign direct investment.

SMBC is one of a clutch of high profile Japanese companies that use Ireland as a base for their overseas operations, including Alps, Fujitsu, Takeda, Trend Micro and Gala. Ireland has a favourable corporation tax of 12.5 per cent which offers non-resident companies an effective way of reducing their international tax bills.

Barry O’Leary, chief of IDA Ireland said: “By signing the MoU between IDA Ireland and SMBC we hope to open the doors to [still] further Japanese investment into Ireland.”
 
SMBC has had a presence in Ireland since 1989 through its subsidiary, Sumitomo Mitsui Finance Dublin. This presence has been further enhanced with the acquisition of SMBC Aviation Capital and the recent opening of a Technology Development Centre, Japan Research Institute- America, in Tralee
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