Aozora Bank, Ltd.
Change in Calculation Method of Capital Adequacy Ratio
From the end of March 2026, the calculation method of the capital adequacy ratio will be changed from the standardized approach to the foundation internal rating-based approach, with approval from the Financial Services Agency.
Key Figures
- Capital Adequacy Ratio Calculation Method: Changed to Foundation Internal Rating-Based Approach
- Previous Calculation Method: Standardized Approach
- Start Date of Application: End of March 2026
AI要約
Overview of Method Change
Aozora Bank, Ltd. will, with approval from the Financial Services Agency, change the calculation method of its capital adequacy ratio from the conventional standardized approach to the foundation internal rating-based approach. The foundation internal rating-based approach uses the bank's internal rating system to more appropriately measure credit risk related to lending and other activities, requiring the establishment of a rigorous internal control framework. Through this change, the bank aims to enhance risk governance and credit risk management, build a sound credit portfolio, and improve profitability.
Effective Date and Future Initiatives
The new calculation method will be applied from the capital adequacy ratio calculation at the end of March 2026, with the ratio scheduled to be announced in mid-May 2026. Aozora Bank will continue to strengthen its internal control system, aiming to create financial added value and contribute to social development under robust risk governance.
