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An elderly, shrinking population with plenty of savings and a steadfast unwillingness to spend them. Negative interest rates and 10-year government bonds that yield exactly nothing. Companies that do not need to borrow and have to be coaxed to spend on anything that might require billable advice. Welcome to banking in Japan.
Japan’s big three banks have been wrestling with these worsening problems for a decade, each of them coming up with strategies, plans and visions to make lemonade from the lemons that surround them domestically.
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