Crisis capital: US$100b shortfall at Japan banks

Tokyo

JAPAN'S three biggest banks may need to raise as much as about US$100 billion of capital that can be written down in a crisis to meet proposed global rules for lenders deemed too big to fail.

Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group face an aggregate shortfall of 3.2-10.5 trillion yen (S$38-125 billion) that they would need to plug by selling debt, according to estimates by analysts.

Global regulators are preparing the standards to ensure that the largest banks hold a minimum of capital and liabilities that can be written off if they fail. This ensures …