OSAKA -- Resona Holdings Inc., which includes Daiwa Bank and Asahi Bank, will boost its capital by issuing new shares if its capital adequacy ratio falls as a result of increased loan-loss charges, President Yasuhisa Katsuta said in a recent interview.
"It wouldn't matter much whether we can keep the capital adequacy ratio above 8 percent or not," Katsuta told Kyodo News. "But if the ratio falls as a result of increased loan-loss provisions, we've got to think about a capital hike."
He added, however, that the capital increase would likely be made by issuing preferred securities rather than common shares.
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