Shinsei Bank, which is struggling to improve its performance, has asked Masamoto Yashiro, its 79-year-old former chairman and chief executive, to become non-executive chairman.

Mr Yashiro was instrumental in rebuilding Shinsei Bank from a nationalised bank that used to provide long-term credit to industry into a modern bank focused on retail and institutional businesses. He returns to the chairmanship at a time when Shinsei is facing huge challenges to its business model. Mr Yashiro is also a close business associate of Christopher Flowers, the bank’s largest shareholder.