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Clifford Chance

Clifford Chance

Briefings

Japan: Banking Regime Update – Deregulation on the 5% Rule etc. [Japanese version]

2 August 2013

Under new laws recently passed by the Japanese Diet, restrictions limiting the shareholding of a Japanese bank in a non-financial business – the so-called '5% rule' – will be deregulated and additional support will be given to banks seeking to act as equity investors in corporate restructurings, with Japanese banks expected to take a more central role in the restructuring of corporations as a result. Reforms will also allow Japanese banks to conduct intermediary activities on behalf of foreign banks, and to hold shares in foreign non-financial businesses acquired through M&A activity. The reforms and new regulation are expected to take effect around 1 April 2014.

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