A “super-bank” will soon be born in Japan. If everything goes according to plan, Dai-Ichi Kangyo Bank, Fuji Bank and the Industrial Bank of Japan will combine to create a gigantic financial group with assets that will eclipse all other banking institutions in the world. The fact that the three banks have chosen what amounts to an effective merger in consolidating their business indicates the tremendous pressure the Japanese banking industry faces to survive, now that the government has removed the protective blanket under the “Big Bang” deregulation initiative.

None of the three banks is a small fry by any measure. DKB is one of the top Japanese commercial banks in terms of physical size and assets; Fuji is not far behind. IBJ is the nation’s leading commercial bank specializing in long-term industrial financing. Their decision to band together is a harbinger of things to come in banking in Japan and elsewhere.

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