The government's reform push for the country's $5 trillion asset management industry has sparked a series of action plans from top Japanese banking groups to beef up their long overlooked asset management businesses.
Asset management has emerged as an area of focus for the banks this year as the financial regulator sought their help to shake up the industry in line with Japan's policy pledge to turn dormant household savings into investments.
The business could potentially become a major profit center for the banks if an end to decadeslong deflation drives households to shift their money out of bank deposits into stocks, bonds and other assets to hedge against inflation.