Preliminary figures show the BIS capital adequacy ratios of domestic banks averaged 12.98% as of the end of 2005, compare with 12.08% a year earlier. The ratio rose for 14 banks and fell for five. All of the banks reported capital ratios higher than 10% at the year’s end.

Domestic banks’ risk-weighted assets rose 11.5%, but the increase fell short of a 19.9% (KRW17.1 trillion) jump in capital boosted by KRW13.6 trillion in net income for the year. Tier-1 capital rose 30.3% (KRW17.2 trillion), but tier-2 capital fell 0.3% (KRW100 billion). In terms of risk-weighted assets, tier-1 risk-based capital ratio rose from 7.97% to 9.31%, but tier-2 risk-based capital ratio fell from 4.11% to 3.67%.

* Please refer to the attached PDF for details.