March 8 (Reuters) - Goldman Sachs Group Inc ( GS ) said

on Friday it will exit transaction banking in Japan.

The financial group will close Goldman Sachs Bank USA Tokyo

Branch, whose sole purpose was to support transaction banking in

Japan, it said in an emailed statement.

"While remaining focused on growing transaction banking as a

strategic priority, we are stepping back from building out this

business here in Japan," Goldman Sachs ( GS ) said.

The exit was first reported by Bloomberg News on Friday.