S.Korean banks' capital adequacy ratio rises in Q3
Source: Xinhua | 2020-12-09
South Korean banks' capital adequacy ratio rose in the third quarter due to higher capital and lower risk-weighted assets, financial watchdog data showed Tuesday.
The total capital ratio of 19 domestic commercial and state-run banks averaged 16.02 percent under the Bank for International Settlements (BIS) framework as of the end of September, up 1.46 percentage points from three months earlier, according to the Financial Supervisory Service.
The ratio, a barometer of financial soundness, measures the proportion of a bank's capital to risk-weighted assets. Banks are required to maintain the ratio above 10.5 percent.
The tier-1 capital ratio, which gauges common stock capital and retained earnings, gained 1.33 percentage points from three months earlier to 14.02 percent at the end of September
The common equity tier-1 capital ratio, which measures the proportion of common equity to risk-weighted assets, added 1.30 percentage points to 13.40 percent in the cited period.
The higher ratios were attributable to higher earnings and capital as well as lower risk-weighted assets, the financial watchdog said.
Busan Bank logged the highest total capital ratio of 19.11 percent, followed by Citibank Korea with 19.01 percent, Shinhan Bank with 18.77 percent, Gyongnam Bank with 18.52 percent, Daegu Bank with 18.20 percent, NH Bank with 18.12 percent, Woori Bank with 17.64 percent, Gwangju Bank with 17.39 percent and Kookmin Bank with 17.22 percent respectively.
The ratios for the two Internet-only banks, K-bank and Kakao Bank, stood at 25.90 percent and 13.45 percent each.
Busiunion
Busiunion