Mitsubishi UFJ Financial Group Inc. may be defined as one of the most important lenders to the international financial system, Deutsche Bank AG said.
The bank, Japan's biggest publicly traded bank, will probably be ranked as a so-called global systemically important financial institution because of its ties with Morgan Stanley, said Yoshinobu Yamada, an analyst at Deutsche Bank in Tokyo.
The designation would subject MUFG to higher capital requirements that it can likely meet without selling new shares, he said. Smaller rivals Mizuho Financial Group Inc. and Sumitomo Mitsui Financial Group Inc. may be classified as national systemically important financial institutions because their operations overseas are relatively limited, he said.
MUFG in April agreed to exchange $7.8 billion in convertible preferred stock in Morgan for common shares that will give it a 22 percent stake and make it the biggest common shareholder. "Making Morgan Stanley subject to consolidated earnings will set MUFG apart from its smaller rivals in expanding its international business," Yamada said Friday.