The total capital ratio for 28 banks, bank holding companies and internet-only banks under the Bank for International Settlements (BIS) framework averaged 15.25 percent at the end of December, up 0.41 percentage points from three months earlier, according to the Financial Supervisory Service (FSS).
The ratio, a barometer of financial soundness, measures the proportion of a bank's capital to its risk-weighted assets. Banks are required to maintain the ratio above 10.5 percent.
The FSS said the risk-weighted assets declined faster than the capital as the local currency's ascent to the greenback sharply decreased foreign currency exposure in the fourth quarter when the capital tended to slide for the dividend payment.
The risk-weighted assets diminished by 4.0 percent during the October-December quarter, while the capital dipped 1.4 percent in the cited quarter.
The tier-1 capital ratio, which gauges common stock capital and retained earnings, increased 0.38 percentage points from three months earlier to 13.88 percent at the end of December.
The common equity tier-1 capital ratio, or the proportion of common equity to risk-weighted assets, advanced 0.31 percentage points to 12.57 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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