PRICES GO UP AT THE GATE
Mitsubishi UFJ to boost capital by over $10 bil.
Japan's largest bank, Mitsubishi UFJ Financial Group, plans to increase its capital by 1 trillion yen, or more than 11 billion dollars, with a view to boosting its international competitiveness.
NHK has learned that Mitsubishi UFJ is finalizing a plan to issue common shares by the end of the year for what will be an unprecedentedly large single capital increase for the bank.
Mitsubishi UFJ increased its capital by about 9 billion dollars last December so it could write off losses resulting from a drop in the value of shares that it held.
The plan for a huge new capital increase comes ahead of a likely tightening of regulations on internationally active banks in the wake of the global financial crisis.
An NHK reporter says Mitsubishi UFJ is shoring up its financial position so it can better compete with its US and European rivals in the financing of worldwide industrial realignment.