Banks' Q1 capital ratio improves on reduced risky assets

By a2016032

Published : June 1, 2017 - 09:25

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South Korean banks saw their financial health improve slightly in the first-quarter of this year, helped by less exposure to risky assets, the financial regulator said Thursday.

The average capital adequacy ratio of 17 commercial and state-run banks stood at 15.14 percent as of end-March, up 0.33 percentage point from the previous quarter, according to the Financial Supervisory Service.

(Yonhap)

A key barometer of financial soundness, the ratio measures the proportion of a bank's capital to its risk-weighted credit. The Basel, Switzerland-based Bank for International Settlements, an international organization of central banks, requires lenders to maintain a ratio of 8 percent or higher.

Citibank Korea Inc. posted the highest capital ratio of 18.91 percent, while the state-run Korea Export-Import Bank logged the lowest ratio of 11.89 percent.

The policy lender has been reeling from massive losses and bailouts stemming from the ailing shipbuilding and shipping sectors. (Yonhap)

Banks' Q1 capital ratio improves on reduced risky assets

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