ID :
203587
Fri, 08/26/2011 - 01:06
Auther :
Shortlink :
https://oananews.org//node/203587
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S. Korean banks' capital adequacy ratio improves in Q2
SEOUL, Aug. 26 (Yonhap) -- South Korean banks saw their capital adequacy ratio improve marginally in the second quarter of this year from three months earlier, while witnessing significant gains in asset qualities, the financial regulator said Friday.
The average capital adequacy ratio of 18 local banks reached 14.36 percent as of the end of June, up 0.02 percentage point from three months earlier, according to the Financial Supervisory Service (FSS).
The rate was measured under the Basel ??? framework set by the Bank for International Settlements (BIS) and indicates banks' capacity to absorb losses and meet risks including liabilities.
The lenders' Tier 1 capital ratio, meanwhile, jumped 0.31 percentage point from the previous quarter to 11.59 percent, indicating an improvement in the quality of capital.
The growth was largely attributed to banks' rosy earnings results in the second quarter. Banks posted a net 5.4 trillion won (US$5 billion) profit in the April-June period on decreased loan-loss reserves and one-off gains from the sale of a stake in a local builder.
"Local banks' BIS ratio stands at a favorable level and is almost that of the world's 20 biggest banks," the FSS said, adding the comparable figure for the top 20 global lenders averaged 14.69 percent as of July.
The FSS, however, added it plans to continue to instruct banks to manage their capital adequacy rates amid lingering market uncertainties over the global economy and South Korea's household debt.
The average capital adequacy ratio of 18 local banks reached 14.36 percent as of the end of June, up 0.02 percentage point from three months earlier, according to the Financial Supervisory Service (FSS).
The rate was measured under the Basel ??? framework set by the Bank for International Settlements (BIS) and indicates banks' capacity to absorb losses and meet risks including liabilities.
The lenders' Tier 1 capital ratio, meanwhile, jumped 0.31 percentage point from the previous quarter to 11.59 percent, indicating an improvement in the quality of capital.
The growth was largely attributed to banks' rosy earnings results in the second quarter. Banks posted a net 5.4 trillion won (US$5 billion) profit in the April-June period on decreased loan-loss reserves and one-off gains from the sale of a stake in a local builder.
"Local banks' BIS ratio stands at a favorable level and is almost that of the world's 20 biggest banks," the FSS said, adding the comparable figure for the top 20 global lenders averaged 14.69 percent as of July.
The FSS, however, added it plans to continue to instruct banks to manage their capital adequacy rates amid lingering market uncertainties over the global economy and South Korea's household debt.
