Nomura setting up fourth banking division

Regulatory authorities likely guided it to set up a separate banking division.

Nomura is reportedly setting up a fourth division after wealth, investment management, and wholesale banking.

The new division will consist of Nomura Trust and Banking Co, and Nomura Bank (Luxembourg) SA.

It appears that the regulatory authorities guided the firm to set up a separate banking division for this purpose, noted CreditSights.

The assets and liabilities would be governed by a different regulatory regime compared with the framework for securities houses, under which Nomura Holdings and Nomura Securities operate.

The bank reportedly aims to grow its Japan wealth franchise through offerings its clients leverage against their portfolio, concluding that deposits are the lowest cost way to do so, said CreditSights.