The news that Sumitomo Bank of California has been put up for sale by its Japanese parent sent shock waves through the California banking community, leading many to speculate that other Japanese-owned banks in the United States would be next in line.

Some industry observers initially predicted the sell-off would not be limited to Japan, but would involve banks from other financially troubled Asian countries getting rid of their U.S. subsidiaries as well.

But a week after the announcement by Sumitomo Bank Ltd., many analysts now say a widespread Asian sell-off is unlikely.

Officials at many of the banks being cited as sell-off candidates agreed, saying their institutions are most definitely not for sale.

People familiar with Asian banks cited two reasons why such divestitures are unlikely.

First, the large Asian-owned banks in California, most notably Union Bank of California and Sanwa Bank California, are diversified, mainstream establishments in which their parents have invested significant time and money.

Second, most other Asian-owned banks in California, such as Korean and Taiwanese banks, are so small and niche-oriented that proceeds from their sale would hardly help resuscitate their ailing behemoth parents at home.

Sumitomo Bank of California lies right in the middle of those two categories, analysts point out. It is still relatively niche-oriented, focusing on business with Asian customers. But with $5.2 billion in assets, it is big enough to generate meaningful proceeds from a sale perhaps up to $1 billion in today’s hot banking market.

It was that combination that probably convinced Sumitomo Bank Ltd. to put its California subsidiary up for sale, said T.J. Grasmick, a partner at the law firm of Pillsbury Madison & Sutro LLP.

“Sumitomo has that image as not having expanded as strongly into all aspects of commercial banking as Union and Sanwa,” said Grasmick.

Indeed, Sanwa Bank California spokesman Keith Karpe said that Sanwa California, with $8.1 billion in assets, is in the midst of an aggressive expansion plan, as it broadens its California franchise by opening three new branches and starting a new family of mutual funds in recent months.

Such moves, he said, are hardly indicative of a bank about to be sold by its parent.

“If you look at Sumitomo and you look at us, there isn’t much comparison,” he said. “They haven’t had the kind of presence in California that we’ve had, or the kind of commitment to the state. We’re not for sale, and we’ve never been more committed to California than we are right now.”

Asked about the possibility of Union Bank being sold, spokesman Andrew Porterfield said “We don’t get that message at all” from the parent bank.

Analysts were split on what might happen to L.A.’s four Korean-owned banks.

All four California Korea Bank, First State Bank of Southern California, California Chohung Bank, and Marine National Bank are quite small. Only California Korea Bank has assets of more than $500 million.

“Korea has tremendous problems. It’s hard to speculate if they’ll sell their subsidiaries, but it would not be unheard of,” said Wade Francis, president of Long Beach-based Unicon Financial Services Inc., which has consulted on a number of Asian bank purchases in California.

“If it makes sense (to sell), they will do it,” he said. “With the current exchange rates, if a Korean bank sells its subsidiary and puts (the proceeds) back into the local currency, that’s a lot of money. But you also wouldn’t want to sell if you think your currency’s going to continue to drop.”

But Joo Oh Kim, vice president of California Chohung Bank, downplayed the prospects of Korean-owned assets being sold and stressed that L.A.-based California Chohung is not up for sale.

“Our parent bank is in good condition compared to other Korean banks, so there’s no reason to sell,” he said. “For all of (the Korean-owned banks in L.A.), the parent banks are in good condition. I think they will not sell their subsidiaries.”

When it comes to banks from Taiwan the other country with a major investment in L.A. banks no sell-offs appear in the offing. In fact, said Francis, the pace of California acquisitions by Taiwanese banks will likely increase over the next few years, barring any economic downturns on the island.

“Taiwan only has a couple of subsidiaries here right now, so they’re in the buying mode,” he said. “They do not necessarily need capital in their own country now. In fact, we’re currently working on two acquisitions for Taiwanese banks, and we’ve had a lot of other inquiries.”