Mitsubishi UFJ Financial Group Inc., Japan's biggest publicly traded bank, may focus more on transactional banking and asset management as new capital rules make lending businesses less attractive, Deputy President Nobuyuki Hirano said.
"The new risk-weighted asset structure will have some negative impact on lending," Hirano said Friday at Bloomberg headquarters in New York. "We need to fine tune our business model, not only putting our resources into lending, but also we need to share our resources to transaction banking, which doesn't require more capital, and we'd like to focus more on flow-based client market businesses."
The Basel Committee on Banking Supervision said last month the world's most important lenders must hold as much as 2.5 percentage points in extra capital to prevent a repeat of the financial crisis. Mitsubishi UFJ won't likely be included in the top group of global systemically important banks, Hirano said.