South Korean banks’ total capital up 1.3% to $3.4b in Q3

Authorities warned of volatile financial markets.

South Korean banks’ total capital rose by 1.3% to approximately US$3.4b (KRW4.5t) in the three-month period ending in September 2023, according to data from the Financial Supervisory Services (FSS).

Risk-weighted assets expanded KRW50t or 2.3% year-on-year during the same period, the data showed.

Overall, domestic banks' common equity Tier (CET1) capital ratio stood at 12.99% as of end-September 2023, with FSS noting that domestic banks’ individual capital ratios satisfied regulatory requirements.

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“However, the domestic banks should get prepared for volatile financial markets and worse economic situations at home and abroad,” it added.

THe FSS added that it will urge banks to “have sufficient loss-absorbing capacity through recapitalization to be prepared for unexpected loss.”