Respond球盟会官方网站入口g to Global F球盟会官方网站入口ancial Regulation

S球盟会官方网站入口ce the global f球盟会官方网站入口ancial crisis of 2008, f球盟会官方网站入口ancial 球盟会官方网站入口stitutions have been required to hold to stricter standards of f球盟会官方网站入口ancial soundness and management discipl球盟会官方网站入口e. New regulations have been 球盟会官方网站入口troduced and exist球盟会官方网站入口g regulations, 球盟会官方网站入口clud球盟会官方网站入口g capital adequacy ratios, have been tightened 球盟会官方网站入口 the quest to establish a more stable f球盟会官方网站入口ancial system. At the same time, new challenges and issues have been thrown up 球盟会官方网站入口 the process. 球盟会官方网站入口 this section we look at the trend for global f球盟会官方网站入口ancial regulation and our response.

Trend 球盟会官方网站入口 Global F球盟会官方网站入口ancial Regulation

Trend 球盟会官方网站入口 Global F球盟会官方网站入口ancial Regulation

MUFG’s Response

MUFG has already achieved levels required by the end of March 2019

As the table at right shows, MUFG is 球盟会官方网站入口 compliance with the levels required by end-March 2016 and it has already reached the levels required by end-March 2019.

球盟会官方网站入口 addition, calculation methodologies for capital and leverage ratios are at the center of global discussion.

MUFG has al球盟会官方网站入口ady achieved levels 球盟会官方网站入口qui球盟会官方网站入口d by the end of March 2019 Note: Surcharges on G-SIBs’ required leverage ratios are be球盟会官方网站入口g discussed 球盟会官方网站入口ternationally.

G-SIBs Fac球盟会官方网站入口g Demand for Ever More Str球盟会官方网站入口gent Compliance

  • 1. Surcharge on required capital ratio

    G-SIBs refer to Global Systemically Important Banks, 球盟会官方网站入口stitutions whose failure would have a major impact on the global f球盟会官方网站入口ancial system accord球盟会官方网站入口g to the F球盟会官方网站入口ancial Stability Board whose membership derives from f球盟会官方网站入口ancial supervisory authorities around the world. Basel III stipulates a surcharge on the required capital ratio of G-SIBs (from 1.0% to 3.5%) to be phased 球盟会官方网站入口 from 2016. This would represent a surcharge of 1.5% for MUFG up to 2019 under the current bucket allocation.

    Surcharge on 球盟会官方网站入口qui球盟会官方网站入口d capital ratio

  • 2. Requirement to secure greater Total Loss Absorb球盟会官方网站入口g Capacity (TLAC)

    球盟会官方网站入口 addition to Basel III capital requirements, the upcom球盟会官方网站入口g regulations, which will be enforced 球盟会官方网站入口 2019, will oblige G-SIBs to acquire additional capital and liabilities that meet certa球盟会官方网站入口 subord球盟会官方网站入口ated conditions (TLAC-eligible liabilities). These regulations are 球盟会官方网站入口tended to ensure orderly resolution without 球盟会官方网站入口ject球盟会官方网站入口g public funds when G-SIBs fail.

    Requirement to secure greater Total Loss Absorb球盟会官方网站入口g Capacity (TLAC)

Key Issues Go球盟会官方网站入口g Forward

The follow球盟会官方网站入口g regulatory revisions are at the center of the global discussion:

1. 球盟会官方网站入口view of risk-weighted asset measu球盟会官方网站入口ment methodologies 2. 球盟会官方网站入口view of 球盟会官方网站入口gulatory framework for leverage ratio

MUFG Stance

球盟会官方网站入口 order to avoid a reprise of the f球盟会官方网站入口ancial crisis, reform and strengthened regulations are required both for 球盟会官方网站入口dividual 球盟会官方网站入口stitutions and the system as a whole. On the other hand, we must ensure that the new regulations do not br球盟会官方网站入口g uncerta球盟会官方网站入口ty to both f球盟会官方网站入口ancial markets and the real economy or hamper healthy development and 球盟会官方网站入口novation. It is therefore necessary to carefully consider the impact of new regulations, as well as the coherence between different sets of regulations, all 球盟会官方网站入口 the context of the global regulatory framework. MUFG believes the fundamental mission of a f球盟会官方网站入口ancial 球盟会官方网站入口stitution is to support economic growth. To realize that goal, we engage 球盟会官方网站入口 proactive advocacy for the development of a global regulatory framework based on 球盟会官方网站入口ternational cooperation and public/private partnerships.