The CEO of Nomura for the EMEA region has taken the Japanese bank through its acquisition of Lehman Brothers' EMEA business and is determined to get maximum gains from the deal. Writer Geraldine Lambe

The future business of Yucho Bank, the unwieldy beast that emerged from the privatisation of Japan’s postal system, is unclear and it faces hostility from private players. Charles Smith reports from Tokyo.

Banks’ overall downturn in performance, despite Japan’s economic growth, signals a rough road ahead.

The six major Japanese bank groups posted a total profit of ¥1513.9bn ($13.2bn) before tax and minority interests for the half year to September 30, 2007, down 33.5% from ¥2274.8bn in the same period in fiscal 2006.

Between 40 and 50 Daiwa executives in Tokyo are going to discover this month that they are bound for pastures new, maybe other parts of Asia or maybe London.

To realise their potential, Japanese real estate investment trusts need both consolidation and to be granted a freer hand by regulators, says Charles Smith.

After the bunker mentality of the early 2000s, when some banks sold off almost all their overseas assets, Japan’s big banks are increasingly turning their attentions abroad. Charles Smith reports.

Japan’s distinctly tiered banking system could change dramatically if local government reform goes ahead, and regional banks are worried by the potential threat that a privatised postal savings bank could pose. Charles Smith reports.

Japan’s banks may be out of hot water in terms of reducing non-performing loans (NPLs) as a percentage of their overall loan portfolios, but they continue to struggle to grow pre-tax profits and assets.

Charles Smith reports on the all-round benefits of deregulating Japan’s municipal finance market and in particular the opportunities that will arise for foreign banks and investors.