Preliminary figures show that the BIS capital adequacy ratio of domestic banks at the end of September averaged 12.83%, compared with 12.53% at the end of June, 12.08% at the end of 2004, and 11.78% a year earlier. For the year, the ratio rose for 15 banks and fell for 4 banks.

Domestic banks’ risk-weighted assets rose 8.3% since beginning of the year, but the increase was easily offset by a 15% (KRW12.9 trillion) jump in capital that resulted from a surge in bank net income totaling KRW10.5 trillion and government capital contribution of KRW500 billion to Export-Import Bank of Korea. Tier-1 capital rose by KRW14.2 trillion (25.0%), while tier-2 capital fell by KRW1.3 trillion (4.4%) for the year.

* Please refer to the attached PDF for details.