In the last two years, Japanese and Chinese financial institutions have made a number of investments in their U.S. and European counterparts, many of which have experienced difficulties as a result of the global financial crisis. The form and timing of these investments have varied, reflective of the different stages of development in the Japanese and Chinese financial markets. Japan’s recent investments, which have come primarily from its three “megabanks,” represent the country’s return to the international arena after Japan’s financial troubles in the 1990s. China’s recent investments are more experimental in nature—trial entrées into the world of international banking as the country looks to become a larger player in global finance. This Asia Focus report compares some of the more significant investments by Japanese and Chinese financial institutions in both the U.S. and Europe, highlighting trends and offering thoughts on the direction of future investments.