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Japan Regulation Shakeup Is Seen as a Game Changer for Banks

  • Legal framework overhaul would expose banks to new competition
  • How to handle deposit-taking emerging as key issue for debate
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Japan Mulls Finance Regulation Shakeup
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Japan’s financial supervisor is laying the groundwork for a regulatory overhaul that could lead to a shakeup in the nation’s $10 trillion banking industry.

The Financial Services Agency is examining how to change the legal framework so that all providers of financial services are subject to the same rules -- a move that would allow emerging companies such as technology startups to compete directly with traditional financial institutions. For banks, the revamp could end their monopoly on deposit-taking and lending as well as free them up to enter new businesses.