Japanese banks must bolster core capital ratios

The Yomiuri Shimbun (Sep. 15, 2010)
Japanese banks must bolster core capital ratios
銀行新規制　邦銀は自己資本の充実を急げ（9月14日付・読売社説）

The Basel Committee on Banking Supervision, comprised of central bankers and supervisors from major countries, agreed Sunday on a new framework for calculating minimum core capital requirements for leading financial institutions.
　主要国の金融監督当局で構成するバーゼル銀行監督委員会が、世界の主要銀行に義務づける新たな自己資本規制の基準を決めた。

The new regulations decided on by the Switzerland-based committee are meant to compel banks to ensure sounder management, to prevent any repeat of the international financial crisis.
　金融危機の再発を防ぐため、銀行に経営の健全性向上を求める措置だ。

Based on the new rules known as Basel III, Japan's three megabanks will have to increase their core capital as soon as possible.
日本の３大メガバンクなども、新しいルールに沿い、資本増強を急ぐ必要があろう。

A bank's capital adequacy ratio indicates the amount of core capital it has to cushion potential losses, as a percentage of loans and other assets. A higher capital adequacy ratio means a bank has a greater capability to deal with risk.
　銀行の自己資本比率は、融資などの「資産」に対し、損失処理に充てられる自前の資金である「自己資本」がどれだけあるかを示した数字だ。数値が高いほど、リスクへの対応力が高い。

The new rules require banks to increase the core tier 1 capital, such as common stock and retained earnings, that they must hold in reserve, to at least 4.5 percent of assets, from the current 2 percent.
They also have to build a separate capital conservation buffer equivalent to 2.5 percent of assets. This makes the total top-quality capital requirement even higher--at least 7 percent of assets.
　新規制は、普通株や利益剰余金などの内部留保による「中核的自己資本」の最低基準を現行の２％から４・５％に引き上げたうえ、２・５％分の上乗せも求めている。実質的に「７％以上」を確保させる厳しい内容となった。

The new rules will be phased in from 2013 and take full effect in January 2019.
　実施時期は、２０１３年から段階的に適用し、１９年１月に完全実施するとしている。

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Early proposals too strict

Proposals were initially floated in the committee that the minimum core tier 1 capital ratio be set between 6 and 8 percent and introduced in 2012 because the United States and Britain, which have suffered greatly from the credit crisis, demanded stricter requirements.
　金融危機の痛手が大きかった米国と英国が、より厳格な規制を求めたため、バーゼル委では当初、中核的自己資本比率を６～８％に引き上げ、１２年から実施するとの案も浮上していた。

However, Japan, Germany and some other countries opposed this, saying that tightening regulations too quickly would cause a credit squeeze and negatively affect the real economy.
　しかし、日本とドイツなどは、急激な規制強化は金融の収縮を招いて、実体経済に悪影響を与えかねないと反対した。

Although the worst of the financial crisis is over, the future of the global economy is still uncertain. The U.S. economy is quickly slowing down and Europe is still suffering from the financial crisis.
　金融危機は最悪期を脱したが、米国経済の急減速や欧州危機など世界経済の先行きは不透明だ。

If regulations on bank capitalization had been tightened quickly as the United States and Britain demanded, banks might have started forcibly calling in loans and lowering loan assets to improve their capital adequacy ratios.
　ここで米英の主張通りに規制強化を急げば、銀行は自己資本比率の引き上げを目指して、貸し出し資産圧縮につながる貸しはがしなどに走り出す恐れがあった。

We think it an appropriate conclusion that the tighter requirements initially proposed were relaxed and that banks were given longer-than-expected transition periods before the new rules will be implemented.
　最終的に、当初案が緩和され、実施時期も先延ばしになったのは妥当な結論と言えよう。

It was a bitter lesson when banks in the United States and some European countries fell on tough times due to the credit crisis and were bailed out with taxpayers' money. With the introduction of the more stringent rules, banks must improve their own strength to weather business crises, and not casually depend on taxpayer bailouts.
　金融危機で米欧などの銀行が経営不安に陥り、公的資金で救済されたのは苦い教訓だ。規制強化を機に、銀行は安易に公的資金に頼ることなく、自らの体力強化で危機を乗り切らねばなるまい。

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Tough road ahead

Attention is now focused on how Japanese banks, including the three megabanks, will deal with the new rules.
　今後の焦点は、３大メガバンクなどの邦銀の対応である。

The core tier 1 capital ratios of Mizuho Financial Group, Sumitomo Mitsui Financial Group and Mitsubishi UFJ Financial Group are said to be between 5 and 7 percent. The Financial Services Agency said Japanese banks will be able to meet the new international rules before the requirements are tightened.
　今年６月末時点で、みずほ、三井住友、三菱ＵＦＪのメガバンクの中核的自己資本比率は約５～７％とされる。金融庁は「規制強化の期限までに、十分に対応は可能だ」と見ている。

However, there is no easy way for Japanese banks to meet the requirements while competing fiercely with gigantic foreign rivals. They must increase their core capital ratios by reviewing management strategies and steadily making profits.
　しかし、巨大な外資との激しい競争を戦いながら、新規制策を達成する道は容易ではない。各行は経営戦略を練り直し、着実に利益を上げて、自己資本を増強する努力が求められよう。

(From The Yomiuri Shimbun, Sept. 14, 2010)
（2010年9月14日01時25分 読売新聞）