Japan’s Big Banks May Need More Capital, UBS Says

Japan’s three biggest banks may be forced to raise capital as central bankers and regulators adopt stricter requirements, UBS AG analyst Nana Otsuki said. “Japan’s megabanks may need to raise capital, including issuing shares,” Tokyo-based Otsuki said today. “They have less leeway than major European and U.S. banks.”Central bankers and regulators adopted new standards on Sept. 6 for the global financial industry to prevent a repeat of the worst economic crisis since the Great Depression. Financial firms should also introduce a leverage ratio and devise ways to boost reserves when the economy is robust, regulators said in a statement the same day.

American International Group Inc., the insurer bailed out by the U.S., declined in New York trading after Credit Suisse Group AG cut it to “underperform” because there may be little left for shareholders following asset sales.

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