Daiwa Bank - Lessons in Risk Management

Though Nomura was mainly engaged in the securities business in Osaka, he decided to establish a bank with the objective of providing support to small and medium-sized enterprises. In 1926, the securities division was separated and established as a securities company. The banking division was named The Nomura Bank Limited, in 1927. The Wall Street financial crash in 1929 proved to be a blessing in disguise for the bank. The bank was designated as the Osaka Prefectural Government's⁶ sole authorized banking agency. While other banks were unwilling to accept the responsibility of administration of government operations requiring numerous complex procedures, Daiwa valued the public aspects of managing the main depository.

Following the dissolution of large financial conglomerates, in the postwar period, the bank changed its name to Daiwa Bank Limited in October 1948. In 1949, Daiwa was designated as an authorized foreign exchange bank.

It had emerged as one of the top financial institutions in Japan, engaged in commercial banking, trust and foreign exchange business. Recognizing the need to ensure a quality life for senior citizens in Japan, Daiwa launched its pension trust⁸ business in 1962. In the next couple of decades, the bank emerged as a leader in the corporate pension business. In 1993, Daiwa acquired a majority stake in one of the leading security companies in Japan, Cosmo Securities Limited...