banks-capital ratios
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SEOUL, June 1 (Yonhap) -- South Korean banks saw their financial health improve in the first quarter from three months earlier thanks to their quarterly net profit and additional bond issuance, data showed Thursday.
The average capital ratio of 20 commercial and state-run banks, and eight bank holding companies stood at 15.58 percent in end-March, up from 15.29 percent three months ago, according to data from the Financial Supervisory Service (FSS).
The average leverage ratio also increased 0.31 percentage point in the first quarter to 6.51 percent compared with the end of December.
The FSS attributed the on-quarter increase to the banks' and holding firms' quarterly net profit and additional Tier 1 bond issuance.
The FSS said, however, risk-weighted assets of banks grew 2.7 percent on-quarter due to the full implementation of Basel ?, an international regulatory framework for banks that aims to strengthen regulation, supervision and risk management of banks, in January.
The ratio is a key gauge of financial soundness by measuring the proportion of a bank's capital against its risk-weighted assets.
The Switzerland-based Bank for International Settlements, an international organization of central banks, advises lenders to maintain a ratio of 8 percent or higher.
The FSS said the banks' capital ratios satisfy the regulatory requirements but advised them to up their readiness for more volatile financial markets and global economic slowdown in the future.
nyway@yna.co.kr
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