Mr Hiroo Atsumi

Hiroo Atsumi

Updates

Banking & Financial Services

Redressing the balance between mortgage borrowers, SMEs and their lenders
Japan | 16 April 2010

The severe effects of the global financial crisis on the Japanese economy have led to the adoption of temporary legislation to protect small and medium-sized enterprises (SMEs) and mortgage borrowers. Among other things, the law provides that SMEs and mortgage borrowers may apply to financial institutions to revise their loan terms; lenders are required to help and advise borrowers in good faith.

Advantages of security trusts
Japan | 15 January 2010

The enforcement of security interests has become a significant issue worldwide, with many receivables becoming uncollectable. Financial institutions providing financing to Japanese companies are looking for ways to create and manage security interests at the lowest cost. The security trust is an effective tool for doing precisely this.

The Dawn of E-money Claims
Japan | 09 October 2009

In light of the widely recognized need to promote financing for small businesses, new legislation has introduced a system for electronic monetary claims. Such claims are intended to accelerate accounts receivable financing, but they have many other potential uses, including the liquidation of syndicated loans and the stabilization of cash management systems.

Reform of Civil Code: Impact on Banks
Japan | 10 July 2009

The Ministry of Justice has published a draft reform of the Law of Obligations, part of the Civil Code. The draft reform covers a wide range of topics, including several which could have a significant impact on banking practice: set-off, prescription, the assignment of claims and joint and several obligations.

Amended Ordinance Facilitates Islamic Finance
Japan | 03 April 2009

An amendment to the Ordinance on the Enforcement of Banking Law is the first provision in Japanese law that clearly allows a subsidiary of a bank or a bank holding company to conduct Islamic finance. It covers transactions that are loan transactions in substance, but not in form, including murabaha and ijara - both forms of financing for purchase or rental.

New Paperless Share System and its Impact on Stock Collateral
Japan | 09 January 2009

The securities settlement system has been improved to enable paperless transactions in commercial paper, government bonds and corporate bonds in Japan. This update reviews the new book-entry transfer system for paperless shares in listed companies and the handling of security interests in such stock in secured financial transactions.

Further Deregulation in Banking Sector
Japan | 13 January 2006

There has recently been a trend towards banking deregulation in Japan. This involves, primarily, the expansion of the types of financial products that banks are permitted to handle over the counter, as well as a greater number of sales channels that are available to banks. Moreover, amendments have recently been made to the legal framework surrounding these issues.

Impact of Trust Business Law Amendment on Banks' Trust Operations
Japan | 21 October 2005

The amended Trust Business Law and Law on Concurrent Operations of Trust Businesses by Financial Institutions came into effect on December 30 2004. The range of assets that can be entrusted and the range of companies that can operate a trust business have been expanded. Moreover, there is now a greater number of customer service points for users of trust services.

Amendment Blocks Unlimited Revolving Guarantees by Individuals
Japan | 10 June 2005

In December 2004 an amendment to the Civil Code, effective as of April 1 2005, altered the system of revolving guarantees. The amended code prevents individuals from making unlimited revolving guarantees in relation to loan obligations. This was introduced in order to protect individual guarantors from the dangers associated with providing such guarantees.

Questions Raised Over Loans in Excess of Maximum Interest Rate
Japan | 30 April 2004

The second petty bench of the Supreme Court has reversed a decision made by the High Court, which had ruled that a provision of the Money Lending Business Law that requires a creditor to return the benefit of any unjust enrichment did apply to a payment of interest made by an obligor in excess of the Interest Rate Restriction Law.

Ashikaga Bank Nationalization
Japan | 19 March 2004

A failed second-tier regional bank has been effectively nationalized after being placed under special crisis management and becoming supported by public funds. The bank is disposing of bad loans and working to find a financial institution to assume its business, in order to return to normal operation as soon as possible.