While the decline of regional banks in Japan can be traced as far back as the mid-1980s and 1990s, led mainly by a series of bankruptcies up until around 2003, the precipitous drop since the mid-1990s has been mainly due to mergers and acquisitions.
Activist investor campaigns in Japan caused a stir earlier this year when Effissimo Capital Management and Farallon Capital Management, raised concerns about the management of Japanese conglomerate Toshiba.
Tokyo is reviving ambitions to be Asia’s top global financial hub. Many factors, including the country’s fully diversified economy and high level of household savings, favor the effort. But will it work this time around?