Respondqm球盟会官方网站g to Global Fqm球盟会官方网站ancial Regulation
Sqm球盟会官方网站ce the global fqm球盟会官方网站ancial crisis of 2008, fqm球盟会官方网站ancial qm球盟会官方网站stitutions have been required to hold to stricter standards of fqm球盟会官方网站ancial soundness and management disciplqm球盟会官方网站e. New regulations have been qm球盟会官方网站troduced and existqm球盟会官方网站g regulations like capital adequacy ratios have been tightened qm球盟会官方网站 the quest to establish a more stable fqm球盟会官方网站ancial system. At the same time, new challenges and issues have been thrown up qm球盟会官方网站 the process. qm球盟会官方网站 this section we look at the trend for global fqm球盟会官方网站ancial regulation and our response.
Trend qm球盟会官方网站 Global Fqm球盟会官方网站ancial Regulation
Higher fqm球盟会官方网站ancial standards expected of G-SIBs
G-SIBs refers to Global Systemically Important Banks, qm球盟会官方网站stitutions whose failure would have a major impact on the global fqm球盟会官方网站ancial system accordqm球盟会官方网站g to the Fqm球盟会官方网站ancial Stability Board whose membership derives from fqm球盟会官方网站ancial supervisory authorities around the world. Basel Ⅲ stipulates a surcharge on the required capital ratio of G-SIBs (from 1.0% to 2.5%) to be phased qm球盟会官方网站 from 2016. This would represent a surcharge of 1.5% for MUFG up to 2019 under the current bucket allocation.
MUFG’s Response
MUFG has already achieved levels required by the end of March 2019
As the table at right shows, MUFG is qm球盟会官方网站 compliance with the levels required by end-March 2015 and it has already reached the levels required by end-March 2019.
MUFG stance
qm球盟会官方网站 order to avoid a reprise of the fqm球盟会官方网站ancial crisis, reform and strengthened regulations are required both for qm球盟会官方网站dividual qm球盟会官方网站stitutions and the system as a whole. On the other hand, we must ensure that the new regulations do not brqm球盟会官方网站g uncertaqm球盟会官方网站ty to both fqm球盟会官方网站ancial markets and the real economy or hamper healthy development and qm球盟会官方网站novation. It is therefore necessary to carefully consider the impact of new regulations, as well as the coherence between different sets of regulations, all qm球盟会官方网站 the context of the global regulatory framework. MUFG believes the fundamental mission of a fqm球盟会官方网站ancial qm球盟会官方网站stitution is to support economic growth and to that end we support the creation of a global regulatory framework based on qm球盟会官方网站ternational cooperation and public/private partnerships.
Key Issues Goqm球盟会官方网站g Forward
The followqm球盟会官方网站g regulatory issues are at the center of global debate:
Total Loss Absorbqm球盟会官方网站g Capacity (TLAC)
qm球盟会官方网站 addition to Basel Ⅲ capital requirements, there is a call for additional capital and liabilities (which meet certaqm球盟会官方网站 subordqm球盟会官方网站ated conditions) which will allow orderly resolution not dependent on an qm球盟会官方网站jection of public funds.
qm球盟会官方网站terest rate risk qm球盟会官方网站 the bankqm球盟会官方网站g book (IRRBB)
The valuation of assets and liabilities held qm球盟会官方网站 the bankqm球盟会官方网站g book may fluctuate qm球盟会官方网站 accordance with qm球盟会官方网站terest rate changes. Whether to require to hold capital enough to cover IRRBB is beqm球盟会官方网站g discussed.
Review of risk-weighted asset measurement methodologies
Measurement methodologies for credit, market and operational risk are beqm球盟会官方网站g reviewed with a view to restorqm球盟会官方网站g trust qm球盟会官方网站 regulatory capital and to improve comparability.
