Domestic banks’ 1quarterly BIS total capital ratio 15.64% as it fell
The Financial Supervisory Service 28said in provisional statistics released on 3that the BIS total capital ratio of domestic banks at the end of the month stood at 15.64%. Growth in loan assets and the rise in the exchange rate were cited as reasons for the decline.
According to the Financial Supervisory Service’s 28report, “2026Capital Adequacy Ratios of Bank Holding Companies and Banks as of the End of 3 (Provisional),” announced on 3the BIS total capital ratio of domestic banks at the end of the month was 15.64%. This was a decline of 0.19%p from the end of the previous year. These statistics are provisional figures compiled for bank holding companies and banks.
The common equity tier one ratio for the same period stood at 13.41%. The common equity tier one ratio was 0.09%p lower than at the end of the previous year. The common equity tier one ratio is a key capital ratio calculated mainly on the basis of common equity.
The tier one capital ratio stood at 14.66%. This indicator was 0.13%p lower than at the end of the previous year. The tier one capital ratio is a capital measure that includes some supplementary capital.
The report cited growth in loan assets and the rise in the exchange rate as the main causes of the decline in capital ratios. An increase in loan assets can expand risk-weighted assets and lower capital ratios. A rise in the won-dollar exchange rate increases foreign currency-related risk-weighted assets.
The financial authorities classified these statistics as provisional. Final figures may be disclosed at a later date. The statistics include data for bank holding companies and individual banks.
The report also presented figures for individual banks. The statistics are an indicator of capital adequacy across the banking sector. The data 28were compiled as of that date.