In a move which could increase FDI in the financial sector in Japan the prime minister of the country has asked the financial regulators to come up with measures for relaxing rules with regards to separation of banking and broking businesses. As of now banks in Japan can only own securities business as independent subsidiaries and also have a limit with regards to their operation. If this goes through then it could help in increasing the competitiveness of Japan’s global financial centre.
It is going to offer further flexibility to financial institutions and rather than adopting EU style banking regulations Japan is looking forward to undertake regulation exceeding US standards. Though there are fears that domestic banks might abuse power but the existing policy was hampering the development of financial markets of Japan up till now. The details still have to be crafted out but this move is expected to being Japan at par with other major countries.
Via ft
