The Financial Services Agency said Friday that it will authorize all major city banks, regional banks and some other lenders to engage in fiduciary operations, a field of banking so far mainly limited to Japan's six major trust banks and Daiwa Bank, one of Japan's nine city banks.
The agency will submit legislation to lift the ban, which could trigger another wave of realignment within the banking industry, during the upcoming 150-day regular Diet session, so that those lenders can start the new business by the end of the year, the FSA said.
The remaining eight city commercial banks, with extensive urban branch networks, three long-term credit banks, regional banks and the Norinchukin Bank will be allowed to sell fiduciary financial products, including loan trusts, pension trusts and securities trusts, it said.