Resources for Basel II Capital Accord (Basel II)

Banks Adopting New Capital Rule for Better Risk Assessment

www.koreatimes.co.kr

Banks are taking measures to improve the quality of their assets and their risk management skills in line with tougher capital requirements set by the Bank for International Settlements (BIS).

On Tuesday, Woori Financial Group said it is considering raising the capital of its two banking units, Kwangju Bank and Kyongnam Bank, by 100 billion won and 200 billion won, respectively. The move reflects concerns that the banks may see their capital adequacy ratios, better known as BIS ratios, fall sharply once they begin reassessing their assets based on the new capital rule.

Currently, Kookmin Bank is the only South Korean lender that is applying the tougher capital guidelines. Its smaller rivals, such as Shinhan, Hana and Korea Exchange Bank, are now awaiting approval from regulators to initiate the advanced risk management system. All banks will be able to introduce it by the end of this year, according to regulators.

View the Resource

Share or bookmarklet this web page at: