South Korean Banks' Capital Adequacy Ratio Falls in First Quarter
The average capital adequacy ratio of 17 commercial and state-run banks stood at 15.64 percent at the end of March. The figure declined from 15.83 percent recorded three months earlier.
upi.comSouth Korean banks recorded a decline in their capital adequacy ratio during the first quarter of the year, according to preliminary data released Thursday. The average ratio for 17 commercial and state-run banks reached 15.64 percent as of the end of March, down from 15.83 percent at the end of December, the Financial Supervisory Service reported.
The watchdog attributed the change to an increase in risk-weighted assets.
The capital adequacy ratio measures a bank's capital relative to its risk-weighted assets and serves as an indicator of financial soundness. The Switzerland-based Bank for International Settlements recommends that lenders maintain a ratio of at least 10 percent.
Key Facts
Story Timeline
3 events- End of March 2026
Average capital adequacy ratio for 17 banks reached 15.64 percent.
1 sourceYonhap - End of December 2025
Average capital adequacy ratio for the same banks stood at 15.83 percent.
1 sourceYonhap - May 28 2026
Financial Supervisory Service released preliminary first-quarter data.
1 sourceYonhap
Potential Impact
- 01
Banks may adjust lending or capital levels to meet internal targets.
Transparency Panel
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