A talent shortage in Japan’s financial industry is becoming so acute that even the biggest banks are struggling to find experienced people. It’s tougher still for regional lenders that can’t pay enough to lure market veterans away from Tokyo.
One rural bank has come up with a creative way to deal with the problem. Yamanashi Chuo Bank has set up an "investment advisory firm” to get around internal salary limits and attract talent to manage its ¥1.1 trillion ($7.6 billion) securities portfolio, said Yoshiaki Furuya, president of the lender.
Japanese banks tend to structure compensation plans in a way that makes it difficult to give outsized pay to specific employees. By establishing an in-house company to avoid such constraints, it shows the lengths that a bank like Yamanashi Chuo is taking to bolster its ranks in a market where expertise is running short.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.