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banks-capital adequacy ratio

Banks' capital adequacy ratio down in Q1

SEOUL, May 28 (Yonhap) -- South Korean banks saw their capital adequacy ratio fall in the first quarter of the year, data showed Thursday.

The average capital adequacy ratio of 17 commercial and state-run banks stood at 15.64 percent as of end-March, down from 15.83 percent three months earlier, according to the preliminary data from the Financial Supervisory Service (FSS).

The watchdog said the change reflects the rise in reduced risk-weighted assets.

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

The Switzerland-based Bank for International Settlements (BIS), an international organization of central banks, advises lenders to maintain a ratio of 10 percent or higher.

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