South Korean Banks Strengthen Capital Ratios in Q2 2024

South Korean banks reported an improvement in their capital ratios in the second quarter of 2024, with the total capital ratio rising to 15.76% as of the end of June, according to data from the Financial Supervisory Service (FSS). This marks a 0.13 percentage point increase from the end of March.

The Common Equity Tier 1 (CET1) ratio, which measures a bank’s core capital against its risk-weighted assets, also increased by 0.18 percentage points to 13.18% during the same period. The Tier 1 capital ratio saw a similar rise, reaching 14.51%.

Additionally, the leverage ratio, which assesses the bank’s capital against its total assets, climbed by 0.14 percentage points to 6.76%.

The FSS confirmed that all domestic banks met regulatory capital requirements as of the end of March 2024, reflecting a stable financial position within the industry.