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.

According to reports, the three banks are now in the final stages of mapping out a blueprint for a broad-ranging business alliance. Current plans call for the establishment of a financial holding company by the fall of 2000. Wholly-owned subsidiaries will then be formed to handle retail banking, investment banking, securities and other financial businesses. This, of course, will involve a complete restructuring and consolidation of the three banks. The latest company reports show that the three institutions command a combined 141 trillion yen in assets, a financial position that will greatly enhance their creditworthiness in the market. By restructuring their operations, the three banks also hope to sharpen their global competitive edge.