Foreign banks are expected to be big winners from the reforms sweeping Japan’s financial sector. This is not least because they are reckoned to be more adaptable than Japanese firms because of their experience of other deregulated markets and more flexible cost structures. “It is very easy for foreign financial institutions to make money in Japan,” says UBS Securities senior analyst Yukiko Ohara. “They are much more focused on return ratios, on getting value from unprofitable clients, and they have the technology to survey and maximize their profitability.
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