Economic Indicators and Efforts for Sustainability
Capital Policy II _ Ensuring Soundness
Status of Integrated Risk Management (September 30, 2022)
(Hundreds of
Millions of Yen)
7,000
CET 1 ratio 14.5% level
I
6,000
Evaluation Gain
1,711
5,000
4,000
Common stock,
3,000
etc.
Tier 1
(excluding
evaluation
gain)
2,000
1,000
Buffer
3,022
Operational risk
130
Capital level to be secured by the Group
Economic Capital Basis
CET 1 ratio 15% level
Market risk
2,830
Operational risk
121
0
Risk capital
(¥666.2 billion)
Credit risk
680
Risk limit
Market risk
1,768
Credit risk
CET 1 ratio 8% level
Stress test
Expected balance
Corporations
Overseas ocean
transport industry
Securities
Additional
required capital
Stress scenarios in macroeconomic and financial
environment
Regulatory
required capital
3,674
Estimation of credit costs, impairment loss and
evaluation gain (loss) on securities/risk-weighted assets
323
Risk amount
(September 30, 2022)
Required capital
I
(Regulatory capital basis)
Equity ratio forecast after stress (Interim perspective)
Consider whether steady equity ratio can be
maintained
[Issues in integrated risk management]
⚫Insufficient quantification of industrial concentration risk
•Limitations of measuring risk amount by VaR
⚫Aggressive market risk-taking to ensure profitability
[Changes in the economic and financial environment amid
the COVID-19 pandemic]
⚫Support for revitalization of the stagnant local economy
•Active support for ship finance for maritime businesses,
one of the local industries
⚫Unexpected increase in market and price volatility
Need to calculate
required equity in
line with
characteristics of
the Group's
portfolio
Calculate additional required capital to be
secured by the Group
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