| S Korean banks financial conditions improve in Q2 |
SEOUL, Sept. 22 (Xinhua) -- South Korean banks' financial conditioned improved in the second quarter from the first quarter due to their increase in equity capital and decrease in risky assets, the Financial Supervisory Service (FSS) said Monday.
According to the financial watchdog, the average capital adequacy ratio of 18 commercial and state banks of the country in April-June period gained 0.16 percentage points from three months earlier, posting 11.36 percent.
Although the ratio is lower than the 12.31 percent at the end of last year, it is much higher than the minimum BIS ratio of 8 percent that Basel requires.
The FSS said the local bank's capital base in the second quarter gained 1 percent from the previous three months, while risk-weighted assets declined 0.5 percent.
Local banks' combine net profit which amounted to 3.4 trillion won (2.99 billion U.S. dollars) in the second quarter, helped to raise the lenders' capital base, the FSS added.
Meanwhile, capital adequacy ratio improved for nine lenders out of 18 in the April-June period.
Although the BIS declined for the remainders in the same period, their ratio also stayed above 10 percent, the FSS said.
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