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Banks' Q1 capital ratio improves on reduced risky assets

All Headlines 06:00 June 01, 2017

SEOUL, June 1 (Yonhap) -- South Korean banks saw their financial health improve slightly in the first-quarter of this year, helped by less exposure to risky assets, the financial regulator said Thursday.

The average capital adequacy ratio of 17 commercial and state-run banks stood at 15.14 percent as of end-March, up 0.33 percentage point from the previous quarter, according to the Financial Supervisory Service.

The regulator attributed a rise in the capital adequacy ratio to a decline in risk-weighted assets.

A key barometer of financial soundness, the ratio measures the proportion of a bank's capital to its risk-weighted credit. The Basel, Switzerland-based Bank for International Settlements (BIS), an international organization of central banks, requires lenders to maintain a ratio of 8 percent or higher.

Citibank Korea Inc. posted the highest capital ratio of 18.91 percent, while the state-run Korea Export-Import Bank logged the lowest ratio of 11.89 percent.

The policy lender has been reeling from massive losses and bailouts stemming from the ailing shipbuilding and shipping sectors.
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