Australia markets closed

Why banks should raise equity to get through this stress

Patrick Jenkins

Just over 11 years ago, HSBC asked its shareholders to back an unprecedented £12.5bn rights issue. The March 2009 capital raising — at the time, the biggest ever by a British company — was among the first of many by shell-shocked banks over the following few years. All were crucial to save the global banking system from collapse after the 2008 financial crisis.