Amid close scrutiny both in Japan and abroad, the integration of Japan's major banks is progressing at a rapid pace -- and triggering unprecedented legal battles in the process.
The latest case, involving UFJ, Tokyo-Mitsubishi and Sumitomo-Mitsui, demonstrates how realignment of the banking in- dustry, which used to take place at the initiative of financial regulators, is fundamentally changing. It is also proof -- for better or worse -- that the globalization of domestic industries, which has been triggered by increased participation of foreign capital, is transforming Japanese society into one ruled by contracts and lawsuits.
What we have to keep in mind here is that the latest move is just the beginning -- not the end -- of a new wave of banking sector realignment. We are also continuing to witness two major ongoing trends -- the integration of different financial sectors and the squeezing of financial institutions competing in global fields.