Banks' capital adequacy ratio down in Q3 this year

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Banks' capital adequacy ratio down in Q3 this year

Published: 05 Dec. 2025, 09:31

Bank ATMs are seen in Seoul on Nov. 23. [YONHAP]

Korean banks saw their capital adequacy ratio inch down in the third quarter of the year, data showed Friday.

The average capital adequacy ratio of 17 commercial and state-run banks had stood at 15.87 percent as of the end of September, down from 16.01 percent three months earlier, according to the preliminary data from the Financial Supervisory Service (FSS).

The watchdog said increased risk-weighted assets, including foreign currency-denominated assets, helped reduce the ratio.

The ratio, a key barometer of financial soundness, measures the proportion of a bank's capital to its risk-weighted assets.

The financial watchdog advises lenders to maintain a ratio of 11.5 percent or higher.

Yonhap