S. Korean banks’ capital ratios remain strong in Q2 – data

South Korea’s domestic banks continued to maintain robust capital positions in the second quarter of 2024, according to a latest report published by the Financial Supervisory Service (FSS) on Wednesday.

The total capital ratio of domestic banks reached 15.76 per cent at the end of June, up from 15.63 per cent at the end of March.

This increase was driven primarily by a 0.18 percentage point rise in the Common Equity Tier 1 (CET1) capital ratio to 13.18 per cent.

The Tier 1 capital ratio also improved by 0.18 percentage points to 14.51 per cent. Additionally, the leverage ratio rose by 0.14 percentage points to 6.76 per cent.

As of the end of March 2024, domestic banks met regulatory capital ratio requirements.

The FSS will prioritise prudential supervision to ensure domestic banks have adequate loss-absorbing capacity in light of volatile financial markets.

Attribution: Financial Supervisory Service report

Subediting: Y.Yasser