In a clear indication that some financial institutions may have been hurt less than others in the ongoing financial crisis, Japan's second largest bank Sumitomo Mitsui Financial Group is planning to invest as much as 100 billion yen (£460 billion or $930 million) in UK's fourth-biggest bank Barclays Plc..

This would be part of the £2 billion of funds that the British institution is trying to raise, ostensibly for business development but also expected to bolster its weakened balance sheet following £2.5 billion of sub-prime mortgage related write-downs. Other possible investors include Qatar Investment Authority, Singapore's Temasek sovereign fund and China Development Bank. ( See: Barclays confirms possible sale of new equity, stock jumps in London trading)

While the first of the other three contenders holds a stake in the London Stock Exchange, the Singaporean and Chinese entities are existing Barclays shareholders, owning a combined stake of more than 5 per cent, bought at 720 pence a share last year.

Although Sumitomo's investment is equivalent to a 2.3 per cent at prevailing share prices, it may get the shares at a slight discount, translating to a higher stake in the London-headquartered bank. The Japanese bank will make the investment through its Sumitomo Mitsui Banking Corp. unit.

A tie up between Barclays and Sumitomo could be beneficial in providing opportunities for joint operations in Asia and links between the asset management units of both banks.

Japanese banks have recorded the equivalent of $13.5 billion of losses tied to the meltdown in credit markets, according to the country's financial regulator. Sumitomo Mitsui has reported 130 billion yen of sub-prime- and credit-related losses.

Sumitomo Mitsui fell almost 1.5 per cent to 883,000 yen in Tokyo trading, while Barclays fell 2.4 per cent to 308.25 pence in London trading.