The total capital ratio for 28 banks, bank holding companies, and Internet-only banks under the Bank for International Settlements framework averaged 14.84 percent at the end of September, down 0.46 percentage points from three months earlier, according to the Financial Supervisory Service.
The ratio, a barometer of financial soundness, gauges the proportion of a bank's capital to risk-weighted assets. Banks are required to maintain the ratio above 10.5 percent.
Risk-weighted assets soared 4.5 percent on the expanded corporate loans and the increased exposure to foreign currency assets, while capital added 1.4 percent as policy rate hikes raised loss from the evaluation of bond holdings.
The tier-1 capital ratio, which measures common stock capital and retained earnings, slipped 0.44 percentage points from three months earlier to 13.51 percent at the end of September.
The common equity tier-1 capital ratio, or the proportion of common equity to risk-weighted assets, retreated 0.45 percentage points to 12.26 percent in the cited period.
Banks are required to keep the tier-1 and the common equity tier-1 capital ratios above 8.5 percent and 7.0 percent, respectively.
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