Skip to content
Subscriber Only

Japan’s Lenders Need to Be More Nimble Investors, Ex-Banker Says

  • Regional banks don’t know when to sell for capital gain: Oguri
  • Lenders must invest in assets that can be liquidated quickly
Christmas Illuminations And Shoppers As Japan’s Inflation Slows For Third Month
Photographer: Tomohiro Ohsumi/Bloomberg
Updated on

Japan’s regional banks need to stop their fixation with the old-fashioned buy-and-hold strategy and be more nimble to make the most of their investments, a three-decade industry veteran says.

The current low interest-rate environment calls for lenders to adopt a trading mentality and look to lock-in capital gains when they can, instead of focusing on long-term valuations or set targets, said Naoto Oguri, who spent about 35 years at Shizuoka Bank, most of them in the markets’ division. He left the regional lender in 2015 to set up an advisory firm the following year.