Japan

Japanese banks have been under pressure to meet the capital requirements promulgated by the Bank for International Settlements, which became effective in March 1993. Through securitization, Japanese banks can remove loans and other assets from their balance sheets, thereby improving capital ratios....

Full description

Saved in:
Bibliographic Details
Published inInternational financial law review p. 15
Main Authors Rossner, Daniel M, Shimada, Yoshiki
Format Magazine Article
LanguageEnglish
Published London Euromoney Institutional Investor PLC 01.08.1993
Subjects
Asset backed securities
Banking industry
Banks
Capital markets
Corporate debt
Corporate finance
Finance companies
Financial instruments
Financial reporting
Jurisdiction
Law
Leasing
Legislation
Public interest
Regulation
Securities regulations
Securitization
Trusts
Japan
Online AccessGet full text

Cover

More Information
Summary:Japanese banks have been under pressure to meet the capital requirements promulgated by the Bank for International Settlements, which became effective in March 1993. Through securitization, Japanese banks can remove loans and other assets from their balance sheets, thereby improving capital ratios. Moreover, asset securitization sales can be recognized in fiscal years and interim periods desirable from both a financial reporting and tax perspective. Non-bank companies in Japan have also been giving serious consideration to asset securitization but are restricted by certain statutes. The amendments to Article 2 of the Securities and Exchange Law of 1948, which has been a fundamental obstacle to the development of a market for securitized financial instruments in Japan, have generally disappointed proponents of asset securitization. It also remains unclear whether the newly amended Article 297, which removes the restriction that prohibits Japanese companies from issuing bonds in excess of their net assets, will apply to special purpose corporations that issue asset-backed securities.
ISSN:0262-6969