The total capital ratio based on the International Settlement Bank (BIS) indicator of domestic banks was recorded at 15.58% as of the end of last year.
The Financial Supervisory Service published a report on the 'status of bank holding companies and banks' BIS capital ratios at the end of 2024' on the 31st. The total capital ratio based on BIS decreased by 0.14 percentage points compared to the end of 2023 (15.72%) and by 0.26 percentage points compared to the end of the third quarter of last year (15.84%). The common equity capital ratio at the end of last year was recorded at 13.07%, and the Tier 1 capital ratio was 14.37%.
The BIS capital ratio refers to the ratio of equity capital to total assets (risk-weighted assessment). It is considered a key indicator of a bank's financial structure soundness. The regulatory standards set by financial authorities are a common equity capital ratio of 8.0%, a Tier 1 capital ratio of 9.5%, and a total capital ratio of 11.5%.
Last year, the capital ratios of banks significantly exceeded regulatory levels. However, due to the increase in exchange rates, risk-weighted assets grew significantly, leading to a decline compared to the end of the previous quarter.