Ten years after Japan’s Big Bang, much of the financial landscape looks remarkably unchanged. There has been only modest disintermediation. The bulk of household savings remains on deposit in banks and Tokyo, contrary to early promise, is light years away from London and New York, and even Hong Kong, as a global financial centre.

Now the megabanks, rich in assets but low on growth prospects, are taking up the baton. Their desire to beef up investment banking opportunities has put the spotlight on their securities arms – with Wednesday’s proposed merger between two units of Mizuho Financial Group being a case in point. Mizuho plans to combine Mizuho Securities Company, with its underwriting strength, with Shinko Securities, which boasts a decent sales franchise. Mizuho may further broaden its securities exposure if, as local reports indicate, it injects additional funds – and possibly increases its stake – in Nikko Cordial, Japan’s third-largest brokerage.