Several years after big bang opened up Japan's banking industry to overseas competitors, foreign banks are making an impression on the country's cash management business by running away with clients who are dissatisfied with their local providers. The rush of companies turning to foreign banks is the result of market forces that have plagued Japan's financial sector for over a decade.
Troubled by mounting bad loans and worsening credit ratings, domestic players are finding it hard to hold on to customers. Added to this is the impact of a consolidation in the banking sector, which has seen a number of individual banks merge to form four mega-banks.
Customers that have had relationships with a number...
