Mizuho Financial Group, one of Japan’s leading banks, plans to launch a new private banking unit, according to reports in the Japanese media...

Mizuho Financial Group, one of Japan’s leading banks, plans to launch a new private banking unit, according to reports in the Japanese media. According to reports, the Mizuho unit would work alongside the group's separately listed trust bank, Mizuho Trust, to deliver asset-management and other services to wealthy clients. The news comes right after Nikko Cordial said it would join forces with Europe's Banque Privee Edmond de Rothschild to market trust services to wealthy clients. Further deregulation of Japan’s financial markets, particularly in the area of asset management is leading to a rush of interest in the area of wealth management from both local and foreign players. The demise of Citigroup’s private banking business in Japan due to regulatory difficulties last year is also encouraging new entrants. Citigroup ran one of the biggest wealth management operations in Japan before it was forced to close down the business. There are also many wealthy Japanese, who have so far been under-served by wealth managers. Research by Merrill Lynch found that there was at least 1.3 million Japanese who each have at least Y100 million ($935,700) to invest. Other foreign banks known to be beefing up their wealth management services in Japan include JP Morgan and HSBC Private Bank.