South korea: South Korean banks saw their capital adequacy ratio inch down in the fourth quarter of last year due to increased risk-weighted assets, data showed Tuesday. The average capital adequacy ratio of 17 commercial and state-run banks had stood at 15.83 percent as of end-December, down from 15.92 percent three months earlier.

According to Yonhap News Agency, the preliminary data from the Financial Supervisory Service (FSS) highlighted that increased risk-weighted assets, including foreign currency-denominated assets, combined with increased payouts to shareholders, helped reduce the ratio. The ratio is a key barometer of financial soundness and measures the proportion of a bank's capital to its risk-weighted assets.

The financial watchdog advises lenders to maintain a ratio of 11.5 percent or higher, ensuring that banks remain stable amidst fluctuating asset values and shareholder demands.