Japan’s Mitsubishi UFJ Financial Group (MUFG) has designated its US bank holding company MUFG Americas Holdings (MUAH) as its intermediate holding company (IHC) to comply with the US Federal Reserve Board’s final rules for Enhanced Prudential Standards (EPS Rules).
The EPS Rules foreign banking organisations with a significant footprint in the US to set up an IHC to directly hold US subsidiaries it owns or controls in order to support consistent supervision and regulation of the US units.
MUAH will directly hold the firm’s major US units including MUFG Union Bank, MUFG Securities Americas (MUS (USA)), and MUFG Fund Services (USA). Other US units of MUFG are expected to come under MUAH by July 2017.
In addition, MUS (USA) has changed its legal name to MUFG Securities Americas from Mitsubishi UFJ Securities (USA).
MUAH president and CEO Stephen Cummings said: "These changes provide a stronger governance and risk-management structure in the U.S., in addition to creating a more streamlined organization. Further, we are now in a stronger position to go to market with a unified MUFG brand across our various lines of business."
MUFG has also unveiled plans to set up the US risk committee under the MUFG board risk committee to meet EPS Rules. The new committee will be responsible for managing all types of risk at the combined US business.
Tokyo-based MUFG managed total assets of $2.6 trillion as of 31 March 2016. The company operates with over 2,000 offices in about 50 countries. It offers commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. MUAH is based in New York, and managed total assets of $120.9bn at 31 March 2016.