{"id":137707,"date":"2026-08-31T08:30:12","date_gmt":"2026-08-31T08:30:12","guid":{"rendered":"https:\/\/www.europesays.com\/korea\/137707\/"},"modified":"2026-08-31T08:30:12","modified_gmt":"2026-08-31T08:30:12","slug":"korean-banks-capital-ratio-edges-up-on-profits-share-sales","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/korea\/137707\/","title":{"rendered":"Korean Banks’ Capital Ratio Edges Up on Profits, Share Sales"},"content":{"rendered":"

\"TheThe Financial Supervisory Service. Yonhap News<\/p>\n

South Korean banks’ total capital ratio under Bank for International Settlements standards rose slightly in the second quarter, extending an improvement in financial soundness. Higher net profit and a sharp expansion in common equity capital from share sales drove the gain.<\/p>\n

The Financial Supervisory Service said on the 31st that the total capital ratio at domestic banks stood at 15.77% at the end of June, up 0.03 percentage point from 15.74% at the end of March. The BIS total capital ratio measures equity capital against risk-weighted assets and serves as a key gauge of a bank’s financial soundness.<\/p>\n

The common equity Tier 1 ratio rose 0.12 percentage point to 13.62% over the same period, while the Tier 1 capital ratio climbed 0.08 percentage point to 14.84%. Regulatory minimums are 8.0% for common equity Tier 1, 9.5% for Tier 1 capital and 11.5% for total capital. All domestic banks comfortably exceeded those thresholds, which the regulator assessed as a sound level.<\/p>\n

The increase in capital ratios reflected higher net profit. Combined operating results at 20 domestic banks reached 7 trillion won in the second quarter, up from 6.8 trillion won in the first quarter.<\/p>\n

Total capital ratios were highly stable at Woori, NongHyup, Citibank Korea, Standard Chartered Korea, K Bank, Kakao Bank, Toss Bank, Suhyup and the Export-Import Bank of Korea, all above 16.0%. BNK, however, came in below 14%, a relatively low level.<\/p>\n

For common equity Tier 1, Citibank Korea, Standard Chartered Korea, K Bank, Kakao Bank, Toss Bank, Suhyup and the Export-Import Bank of Korea posted ratios of 14% or higher, while KB, Shinhan, Hana, Woori and the Korea Development Bank stood at 13% or above. NongHyup rose 0.94 percentage point, Standard Chartered Korea 0.78 percentage point, iM 0.25 percentage point and Citibank Korea 0.16 percentage point. K Bank fell 1.39 percentage points, the Export-Import Bank of Korea 0.22 percentage point, Suhyup 0.20 percentage point and BNK 0.15 percentage point.<\/p>\n

“Amid persistent external uncertainties including a prolonged situation in the Middle East, credit risk is widening due to changes in economic conditions such as interest rate increases, and the possibility of a decline in capital ratios remains,” an FSS official said. “We plan to encourage domestic banks to strengthen their loss-absorbing capacity and capital adequacy management so they can maintain stable soundness while faithfully carrying out their core role of financial intermediation.”<\/p>\n","protected":false},"excerpt":{"rendered":"The Financial Supervisory Service. Yonhap News South Korean banks’ total capital ratio under Bank for International Settlements standards…\n","protected":false},"author":2,"featured_media":137708,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[456],"tags":[69857,845,69856,846,57005,1154,30990,13247,69855],"class_list":["post-137707","post","type-post","status-publish","format-standard","has-post-thumbnail","category-bank-of-korea","tag-bank-financial-soundness","tag-bank-of-korea","tag-bis-total-capital-ratio","tag-bok","tag-common-equity-tier-1-ratio","tag-financial-supervisory-service","tag-k-bank","tag-kakao-bank","tag-korean-banks-capital-ratio"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/137707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/comments?post=137707"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/137707\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media\/137708"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media?parent=137707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/categories?post=137707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/tags?post=137707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}