South korea: South Korean banks experienced a decrease in their capital adequacy ratio in the first quarter of the year, as indicated by recent data.

According to Yonhap News Agency, the average capital adequacy ratio across 17 commercial and state-run banks was recorded at 15.64 percent by the end of March. This marks a decline from 15.83 percent at the end of the previous quarter, based on preliminary data from the Financial Supervisory Service (FSS).

The Financial Supervisory Service noted that the alteration in the ratio is attributable to an increase in reduced risk-weighted assets. The capital adequacy ratio serves as a critical indicator of financial stability, representing the ratio of a bank's capital to its risk-weighted assets.

The Bank for International Settlements (BIS), located in Switzerland and serving as an international organization for central banks, recommends that banks maintain a capital adequacy ratio of at least 10 percent.