Nevertheless, the capital adequacy ratios might stay at low levels at banks whose profitability and capital strength are relatively weak. Owing to such concerns, some degree of weakness still remains in Japan's financial system.
Furthermore, from the viewpoint of strengthening our financial base, we regard Equity Ratio as another important management indicator and will improve it to more than 10% as soon as possible.
Whether changes in banks' capital adequacy ratios affect their lending behavior and result in greater fluctuations in economic activity will depend on banks' management of their capital buffers and the prevailing financial and economic conditions.
An equity capital of well over 1.1 billion euros enables us to face with confidence the challenges of an economic future that is difficult to predict," Schwarzkopf said.
Capital bases of financial institutions such as banks and shinkin banks have on the whole been adequate in terms of capital adequacy ratios based on the regulatory requirements and capital relative to the amount of risk they bear.
Solid figures in profitability and equity capital. Over the past year, Plansee was again able to exceed its earnings targets of a minimum EBIT of 10 percent and strengthen its equity capital.
Looking at the indicators of financial stability at the end of June 2018, the equity ratio was 58.6% and the current ratio was 205.6%, so both are being maintained at sound levels.
Since its enactment in 2015, Regulation A has offered an exemption from registration requirements for smaller companies that want to raise equity capital through a public offering of securities.
As a financial group, conglomerate strategies are also under the restriction of business scope, so investment management seems to be an attractive business which only requires small equity capital.
(iii) Further, the borrowing entities will also be governed by the guidelines on debt equity ratio issued, if any, by the sectoral or prudential regulator concerned.
Looking at our main financial indicators, equity capital at the end of the first quarter was 204.5 billion yen, interest-bearing liability remained almost unchanged at 576.3 billion yen, and the equity ratio was 20.
As for the main financial indicators, equity capital was 310.1 billion yen, interest bearing liabilities 525.6 billion yen, DER 170%, NET DER 107%, and equity ratio 29.
This company started its business as a joint venture with a local company in 1992, but the company name was changed to its current name in 2001 as a Japanese company with 100% owned capital.
The government injected public funds into problem banks to boost their capital bases and in some cases even nationalized them, with tough follow-up measures, including changes of top executives and the closedown of some institutions.
Private actors could be made to follow certain rules, such as the Basel rules on capital adequacy, which are in fact rules regulating the consumption of global financial stability.
For example, as a framework for preempting crisis, discussions are underway on the capital adequacy ratio and review of financial regulations and supervisory system.
In this situation, Japan's financial institutions need to make continuous efforts to improve their risk management and strengthen their capital bases, while properly assessing their risk-return balance.
Robustness of the financial system In fiscal 2009, Japanese banks' amount of various risks relative to their capital decreased against a backdrop of banks' efforts to strengthen their capital bases, among other measures.
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