Shinsei Bank: How to win with a new business model

On September 22, 2004, the Program on Alternative Investments, under the leadership of the Center on Japanese Economy and Business and in cooperation with the Japan Business Association, presented "Shinsei Bank: How to Win with a New Business Model." Shinsei Bank, Ltd., previously the Long-Term Credit Bank of Japan (LTCB), was nationalized in October 1998. In March 2000, a consortium of foreign investors led by the U.S. private equity fund Ripplewood Holdings, acquired LTCB, and the bank made a fresh start as a private commercial bank and changed its name to Shinsei Bank. The bank was listed on the Tokyo Stock Exchange in February 2004. Mr. Yashiro began by detailing the emergence of Shinsei Bank and the transformation from traditional lending practices toward new, customer-oriented ventures such as retail and investment banking (with a focus on business solutions). The bank underwent startling changes in technology and cultural mindset, and perhaps, most importantly, in profitability. Professor Hugh Patrick, director of the Center on Japanese Economy and Business, moderated the discussion following Mr. Yashiro's presentation. Excerpts of the evening's lively discussion are provided in this report.


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Academic Units
Center on Japanese Economy and Business
Program on Alternative Investments, Center on Japanese Economy and Business, Columbia Business School
Published Here
June 15, 2011