The financial authorities announced that fifteen banks and eight bank holding companies will begin to gradually implement Basel III credit risk framework from the end of June 2020.

IMPLEMENTATION SCHEDULE

Domestic banks and bank holding companies were asked to notify the authorities by the end of May their preferred date to begin the implementation. A total of fifteen banks and eight bank holding companies applied for the early implementation as shown below and the financial authorities approved their implementation schedule.

Standard Chartered Korea, Kakao Bank and K Bank will begin to implement Basel III credit risk framework beginning in January 2023.

EXPECTATION

The early implementation of Basel III credit risk framework is expected to boost the capital adequacy ratio of domestic banks and bank holding companies. The government expects that the increased capital adequacy ratio at banks will help make available more funding sources to finance and support the real economy.

* Please refer to the attached PDF for details.