Slight Improvement in Bank Capital Adequacy in Q1

This year, in the first quarter, the capital adequacy ratio based on the Bank for International Settlements (BIS) standard, a soundness indicator for domestic banks, slightly increased.

According to the 'Status of BIS Capital Ratio of Bank Holding Companies and Banks at the End of March' released by the Financial Supervisory Service on the 29th, the total capital ratio of domestic banks was 15.68%, up 0.08%p from the previous quarter. The total capital ratio is the value obtained by dividing the total capital of a bank by its risk-weighted assets. A higher ratio indicates better soundness.

The Common Equity Tier 1 (CET1) ratio rose by 0.13%p to 13.20%, and the Tier 1 capital ratio increased by 0.14%p to 14.53%.

The BIS capital ratio is the ratio of equity capital to total assets (risk-weighted assets) and is considered a key indicator of a bank's financial soundness. The regulatory standards set by the supervisory authorities are a CET1 ratio of 8.0%, a Tier 1 capital ratio of 9.5%, and a total capital ratio of 11.5%. The Financial Supervisory Service evaluated that "all domestic banks significantly exceed the capital regulatory ratios, indicating a favorable level."

Based on the total capital ratio, KB Kookmin Bank, Korea Citibank, SC First Bank, and Kakao Bank showed very stable figures, exceeding 16.0%. Based on the CET1 ratio, Korea Citibank, SC First Bank, Kakao Bank, and Toss Bank exceeded 14%, while KB Kookmin Bank, Hana Bank, Shinhan Bank, Export-Import Bank of Korea, Korea Development Bank, and K Bank exceeded 13%.

The Financial Supervisory Service stated, "As domestic economic recovery delays and uncertainties in U.S. tariff policies persist, we will continue monitoring to ensure sufficient loss absorption capacity is maintained."

sjmary@fnnews.com Seo Hye-jin Reporter