Japan's Private Banking Industry: The Competition
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Code : COM0111
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Region : Japan
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Development of Private Banking in Japan The establishment of Bank of Japan in the year 1882 by the Meiji government laid the foundation for the private banking systemin the country. The establishment of the bank was part of the reforms undertaken by the Meiji government in the fields of education, transportation and finance. Initially, the larger banks used to provide on-shore private banking services to its clients... Competition in Japan's Private Banking Industry The concept of private banking was alien to the Japanese. Even those who knew it, normally preferred to deposit their money in the postal savings institution or in the local banks. These local banks offered a nominal interest on the deposits of the customers and in some cases the depositors in return paid the interest to the bank for keeping their money. Speaking on the investment preference of the Japanese, Rolf Garber, chief executive of LGT bank, said, "For some very strange reasons, the Japanese investors prefer to give their money to local banks, nearly paying interest to its bankers as he earns virtually nothing"... Private Banking in Japan - The Future Experts consider Japan as a huge potential market for private banking in the coming years. Speaking on this, Rudolf Flury, head of UBS' wealth management business in Japan, said, "The country can be regarded as an emerging wealth management market with alarge untapped potential". Analysts anticipate that the demand for wealth management services would increase in view of Japan's economic reforms that include the privatization of postal savings institution by the year 2007... |
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