Case | HBS Case Collection | October 2008 (Revised September 2009)

Consumer Lending in Japan: Citi CFJ (A)

by J. Gunnar Trumbull and Akiko Kanno


Despite a tradition of high household savings, Japan has supported a dynamic and technically sophisticated consumer-lending sector. The high profitability of the sector has periodically attracted interest from domestic banks as well as international investors. Most recently, in 1998 and 2000 respectively, GE Capital and Citi Financial both acquired Japanese consumer-lending companies. In 2006, when the Japanese Supreme Court rules that one of the big Japanese consumer lenders must repay a borrower for "excess interest payments," the U.S. firms must decide how to respond.

Keywords: Mergers and Acquisitions; Financing and Loans; Foreign Direct Investment; Personal Finance; Courts and Trials; Business and Government Relations; Banking Industry; Japan;


Trumbull, J. Gunnar, and Akiko Kanno. "Consumer Lending in Japan: Citi CFJ (A)." Harvard Business School Case 709-017, October 2008. (Revised September 2009.)