South Korea’s Financial Supervisory Service published end-December 2025 capital ratio data for domestic banks and bank holding companies, showing modest quarter-on-quarter declines across CET1, Tier 1, total capital and leverage ratios while remaining above regulatory requirements. Domestic banks’ average common equity Tier 1 (CET1) ratio was 13.51% (down 0.12 percentage points from three months earlier), the Tier 1 ratio was 14.80% (down 0.08 percentage points), the total capital ratio was 15.83% (down 0.09 percentage points), and the leverage ratio was 6.76% (down from 6.83%). Bank holding companies (eight) reported CET1 of 13.14%, Tier 1 of 14.80%, total capital of 15.74% and leverage of 5.98%, while banks (20) reported CET1 of 14.62%, Tier 1 of 15.28%, total capital of 16.68% and leverage of 6.52%. The release restates BIS minimum requirements of 8.0% CET1, 9.5% Tier 1 and 11.5% total capital (plus 1 percentage point for systemically important banks), and a 3.0% leverage ratio (not applicable to bank holding companies), and notes the December 2025 figures are preliminary and subject to change. The Financial Supervisory Service indicated it will continue to guide banks to strengthen loss-absorbing capacity and will monitor capital ratios closely.
South Korea Financial Supervisory Service 2026-03-31
South Korea Financial Supervisory Service reports banks remain above capital requirements despite end-December 2025 ratio declines
The South Korea Financial Supervisory Service published preliminary end-December 2025 capital and leverage ratios for domestic banks and bank holding companies, showing modest quarter-on-quarter declines but levels remaining comfortably above Basel Committee minimum requirements. Average common equity Tier 1, Tier 1, total capital and leverage ratios for both banks and bank holding companies stayed well in excess of these thresholds. The Financial Supervisory Service said it will continue to guide banks to strengthen loss-absorbing capacity and closely monitor capital ratios.