When you start a company like XYZ bank you need to put some money in. That is stated capital. You use that to acquire assets and losses go to retained losses. Then you have to offset losses by getting more money ... Rights. This increases your stated capital.
Then you make more losses so now you cannot raise money. So you offset all the losses by reducing stated capital. When you do this your shares are cancelled in proportion. Have you seen disclosure about reduction in stated capital?
Very rare but i have seen it. After you have less stated capital your customers are not secure because the next major loss wipes out all the equity.
So CB and other banks you borrow from get upset. They ask for a major capital injection and you talk about your land value. CB tells you off put some cash. So the big cash guy comes (if comes) and says I want a 95% stake because I'm bailing you out .... Like JP Morgan Merrill Lynch deal.