johnhemming wrote:scrumpyjack wrote:It can't make economic sense to raise more equity when the shares trade at almost half net asset value. Why would shareholders want to put more money in for such low returns?
Its a regulatory issue for Banks.
Yes they need to have the level of capital required to support the lending they undertake.
If there is a danger of having insufficient capital for that level of lending, the solution is either to raise more capital or to reduce the lending. There may be a strong argument for the latter.