Japanese banks have escaped much of the downdraft of the global banking crisis, but maybe not for long. On Thursday, Sumitomo Mitsui Financial Group Inc. said it would tap private investors for an unexpectedly large new financing of ¥538.2 billion ($5.9 billion) to shore up its balance sheet.
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The amount, which would be raised by selling preferred stock to institutions, is almost 50% more than the ¥284 billion that Japan's No. 2 lender had previously announced. The figure could increase after Sumitomo said it "may issue" further preferred stock.
The fundraising comes less than six months after Sumitomo invested £500 million ($746 million) in struggling British bank Barclays plc, an investment that has since lost about half its value. - Paul Whitfield
