The rule changes would also allow bank holding companies to allocate assets and functions more freely among subsidiaries, reuters.com reports. Both Japanese banks and regulators have become concerned that current regulations may find them not sufficiently flexible to navigate rapid changes in business, whether that be digital advances in financial payments or coping with the pressure to merge for regional lenders.
A relaxation of rules would also make it easier for regional banks to hive off and integrate certain operations like asset management as they come under pressure to merge amid low growth prospects. Japans three biggest banking groups, including Mitsubishi UFJ Financial Group Inc, have commercial banks, securities brokerage house and other financial services subsidiaries.
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