Object of legal relations of crediting in foreign currency

In the article presents the systematization of legal and scientific approaches to the composition and characteristics of foreign currency lending entities. It was opened and analyzed the scientific approaches and views of the legislator on this issue in order to distinguish a generalized definition of this aspect. It is established that at the present stage of development of scientific thought and legal support there is no unified approach to the separation of the main composition of objects of legal relations of the specified category. It is revealed that the civil law takes into account the basic values of credit relations (the allocation of objects such as cash and interest on the loan), but in other regulations there is no reference to their exhaustive list, which complicates the definition of characteristics and features of this phenomenon. Based on the research of scientific and legislative approaches, the classification of features and types of legal relations objects in the sphere of foreign currency lending is formulated. The following main features and types of objects of legal relations in the sphere of foreign currency lending are distinguished, namely: 1) a specific feature according to which the foreign currency cash provided by the lender to the borrower under the credit agreement is distinguished; 2) the value attribute, which provides for the allocation of the principal amount of the borrower's obligations and the interest on them specified in the credit agreement; 3) an obligatory sign (a reference to the obligation on the part of the lender to provide a loan of this category, and the obligation on the part of the borrower to pay the loan and interest thereon); 4) a sign of reversal caused by the characteristics of repayment of principal and interest on the loan; 5) an additional feature of foreign currency conversion, which allows to distinguish the object of legal relations in the sphere of lending in the direction of currency transactions, namely, the exchange rate.

Low returns drive Japanese megabanks further overseas

Subject The overseas activities of Japan's megabanks. Significance After two decades of global retreat, Japan's banks are once again advancing, after abundant liquidity and strong capital ratios allowed them to exploit post-financial crisis retrenchment by European and US competitors. Overseas activities now account for over 30% of their gross profits. However, they include higher-risk activities such as acquisition and leveraged lending, creating additional vulnerabilities for the longer-term financial stability of Japan's banking sector. Impacts The banks aim to fund offshore foreign-currency lending from foreign currency retail deposits, not wholesale funding and swap markets. The megabanks aim to expand investment banking, where the potential rewards exceed those of lending to individual and corporate customers. Japan's banks and their listed corporate customers will adopt new corporate governance rules that discourage of cross-shareholdings. Mizuho and SMFG will seek to emulate through acquisition the success of MUFG's California-based MUFG Union Bank.