Shenzhen Development Bank (SDB) (000001.) is considering raising funds to improve its capital adequacy ratio after an asset restructuring with Ping An Insurance Group, reports Xinhua News Agency, citing bank president Richard David Jackson.

SDB’s capital adequacy ratio reportedly hit the minimum allowed by regulatory authorities. As of March 31 2011, its capital adequacy ratio and core capital adequacy ratio were 10.13 percent and 7.14 percent, respectively.

The latest regulatory standard requires system-important and other banks to have capital adequacy ratios of no lower than 11.5 and 10.5 percent, respectively.

Jackson was quoted as saying the bank is undergoing a major asset restructuring and thus cannot use private placement to supplement its capital. The bank issued hybrid bonds in April to mitigate the problem. Jackson hopes that the bank’s plan to supplement capital will be completed by either the end of 2011 or in early 2012.