TOKYO (AFX-ASIA) - Bank of Japan governor Masaru Hayami said a public injection of funds into banks will help cover a possible shortfall in capital levels and accelerate bad-loan disposals. "The Koizumi government should promote structural reforms, and an early resolution of banks' bad-loan problems should come first," Hayami told the parliament Lower House budget committee. "Banks may face shortfalls of funds in the process of disposing of bad loans. Capital injections could contribute to covering the gap," he said. Hayami said he has "no special ideas" on whether the government should avoid injecting funds into banks that appear to have capital-adequacy ratios of more than 8 pct. The capital ratios of major banks would remain above the minimum 8-pct level set by the Bank of International Settlements, even deducting previous injections of public funds, he said. However, he conceded that US standards of calculation would show lower capital levels than the methodology currently used in Japan due to differences in the amount of tax-related assets included on banks' balance sheets. "Major banks' capital-adequacy ratios can clear 8 pct even after deducting past public-fund injections from the calculation of capital assets, " Hayami said, but added: "Japanese standards are a little bit sweet." Earlier, Democratic Party of Japan lawmaker Motohisa Ikeda said the top 15 Japanese banks averaged capital-adequacy ratios of 3.9 pct at end-September using US standards and excluding earlier public fund injections. The DPJ is the largest opposition party. Mizuho Holdings' consolidated capital ratio was 2.8 pct at end-September, the latest available figures, while UFJ's was 3.8 pct and Mitsui Sumitomo's was 3.9 pct, using the US standards, Ikeda said. JP Morgan Chase has a capital-adequacy ratio of 12 pct, he added.