SEOUL, May 28 (Xinhua) -- South Korean banks' capital adequacy ratio fell in the first quarter owing to an expansion in risk-weighted assets and corporate exposure, financial watchdog data showed Thursday.
The total capital ratio for 28 banks, bank holding companies and internet-only banks under the Bank for International Settlements (BIS) framework averaged 15.64 percent at the end of March, down 0.19 percentage points from three months earlier, according to the Financial Supervisory Service.
The ratio continued to go down for three consecutive quarters.
Despite the robust net income for banks, the foreign currency risk-weighted assets increased on the back of volatility in the South Korean won versus the U.S. dollar exchange rate.
Rising corporate loans also contributed to the lower capital ratio.
The ratio, a barometer of financial soundness, measures the proportion of a bank's capital to its risk-weighted assets. Banks are required to maintain the ratio above 11.5 percent. ■
