South Korean banks' financial conditioned improved in the second quarter
from the first quarter due to their increase in equity capital and decrease in
risky assets, the Financial Supervisory Service (FSS) said today.
According to the financial watchdog, the average capital adequacy ratio of 18
commercial and state banks of the country in April-June period gained 0.16
percentage points from three months earlier, posting 11.36 percent.
Although the ratio is lower than the 12.31 percent at the end of last year,
it is much higher than the minimum BIS ratio of 8 percent that Basel requires.
The FSS said the local bank's capital base in the second quarter gained 1
percent from the previous three months, while risk-weighted assets declined 0.5
percent.
Local banks' combine net profit which amounted to 3.4 trillion won (2.99
billion U.S. dollars) in the second quarter, helped to raise the lenders'
capital base, the FSS added.
Meanwhile, capital adequacy ratio improved for nine lenders out of 18 in the
April-June period.
Although the BIS declined for the remainders in the same period, their ratio
also stayed above 10 percent, the FSS said.
