Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : COM0111

Year : 2006

Industry : Banking, Insurance and Financial Services

Region : Japan

Teaching Note: Not Available

Structured Assignment : Not Available

Abstract: Although Japan is considered as one of the fastest growing markets for private banking in Asia, the concept of private banking was alien to the Japanese for many years. Citibank was the first financial institution that introduced private banking to the Japanese and played an important role in the development of private banking in the country. Following Citibank's success, many other financial institutions, both domestic and foreign, entered the industry. However, the private banking industry in Japan received a blow in the year 2005, when Citibank was issued a notice to close down its private banking operations in the country, for violating the rules and regulations of the Japanese financial systems regulator Financial Services Agency [FSA]. After Citibank pulled out of private banking in the country, the competition among the other financial institutions providing private banking services intensified. The economic reforms undertaken by the Japanese government also encouraged many financial institutions to provide private banking services to their clients. Analysts expect demand for private banking services in Japan to increase manifold in the coming years.