Sumitomo Mitsui Financial Group is increasing to as much as Y700bn ($7.6bn) the amount of capital it aims to raise to meet unexpectedly buoyant loan demand from Japanese companies amid the global credit crunch.

Japan’s third largest bank said Thursday it would raise Y538.2bn by issuing preferred securities, rather than an initially expected Y400bn, and indicated it could raise more in the new year to meet stronger-than-expected demand for loans.