Japanese banks have begun offering investors an alternative to low interest-rate bank accounts as part of the country's financial reform programme.

Banks and life insurers have launched investment trusts opening a new battle in the country's financial market.

Many Japanese banks have signed deals with American firms which have been attracted by the ten trillion dollars of savings, most of which have been kept in accounts earning less than half of one per cent interest.

It's the largest pool of personal savings outside the United States.

Sixteen banks opened special windows for investment trusts at one thousand branches across the country.