Market Trends of Japan Private Banking Industry
Number of High Net Worth Adult Individuals (HNWI) in Japan in 2021
High Net-Worth individuals (HNIs) belong to the financial services sector, where a class of individuals has an investible surplus of more than Rs 5 crore below this threshold. Such investors are categorized as retail as measured by their net worth in the financial industry.HNIs are always in high demand by private wealth managers because preserving and maintaining such assets takes much work. Japan has a population of 125.85 million. In 2021, there were more than 3.16 million high-net-worth individuals (HNWI) with a net worth of one to five million U.S. dollars in Japan, compared to 88 individuals with a net worth of over 500 million dollars. If the HNIs are more, it will significantly impact the banking and financial sectors.
Capital Adequacy Ratio of Banks in Japan in 2021
The total capital ratio measures the ratio of a bank's capital to its risk-weighted assets. In the fiscal year 2021, the capital adequacy ratio of Japanese banks that have adopted the international regulatory framework for banks stood at 13.27 percent. Banks adopting the domestic standard had an average capital adequacy ratio of 9.64 percent. Banks' minimum capital adequacy ratio requirements are lower under the domestic standard. The target minimum standard capital adequacy ratio is set at 8 percent.
