Sakura Bank will renovate its organization by upgrading its investment banking division into a de facto "internal company" and regrouping its commercial banking divisions, effective Oct. 1.
The renovation is part of the bank's strategy for dealing with the upcoming "Big Bang" of financial deregulation. A "company president" will be assigned to the new investment banking division, which includes such operations as corporate financing and fund management. The "presidency," to be assumed by a Sakura vice president, will have nearly independent authority on personnel affairs, budget compilation and organizational restructuring.
The other divisions will be lumped into three groups -- branch, corporate banking and overseas operations. The groups will be led by the bank's executives with large authority. Private banking -- the kind of services for wealthy individuals -- will be also reinforced under the branch operations group.
Nippon Credit Bank, rehabilitating from serious credit problems, created its own "internal companies" Sept. 1 by making three divisions of independent nature for banking, fund management and debt collection.
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