In Brief: 52% of Japan's Top Banks Undercapitalized

The head of the Financial Supervisory Agency said Friday that of Japan's 121 first- and second-tier regional banks, 63 had capital adequacy ratios below 8% on March 31.

Masaharu Hino told a parliamentary committee this was an increase of seven banks over the previous year.

Japanese banks with international operations must have capital adequacy ratios of 8%. Banks with purely domestic operations are required to have ratios of only 4%.

The agency said 20 of the 64 first-tier regional banks had a ratio below 8%, while 43 of the 57 second-tier banks had a ratio below 8%.

Mr. Hino also said 26 of the first-tier regional banks and 23 of the second-tier banks posted net losses for the fiscal year ended March 31.

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