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The government will come up with guidelines by the end of March for assessing efforts by banks to increase their capital, according to Financial Services Minister Heizo Takenaka.

Takenaka unveiled the plan Sunday, following a spate of recent announcements on this subject by major banks.

Mitsubishi Tokyo Financial Group Inc. said Friday it will boost its capital by about 350 billion yen, primarily by issuing new common shares through public offerings.

This maneuver will mark the first time in 13 years for a major Japanese financial institution to float common shares in order to boost its capital.

Mizuho Holdings Inc. has previously stated that it has asked major clients and foreign banks to finance a 1 trillion yen capital boost plan.

During an appearance on a TV morning talk show, Takenaka voiced support for Mitsubishi Tokyo’s plan but criticized Mizuho’s plan.

He said Mitsubishi Tokyo’s plan to raise funds through public share offerings is the right thing to do.

Takenaka argued, however, that Mizuho could be open to criticism if the banking group tries to procure funds by exploiting the strong position it holds as a lender.

Should clients readily accede to Mizuho’s demands, it could lead shareholders to file lawsuits, he added.

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