NongHyup Financial Completes Credit Risk System Incorporating Basel III Standards

[Asia Economy Reporter Kiho Sung] NH Nonghyup Financial Group announced on the 31st that it completed the 'Nonghyup Financial Basel III Credit Risk Calculation System Construction' project on the 30th to introduce Basel III.

Through the project, Nonghyup Financial introduced a credit risk management system to comply with Basel III regulatory requirements starting from September last year. This allows the group to utilize the capital capacity gained from the reduction of group credit risk-weighted assets (RWA) and the increase in the BIS ratio to support productive sectors such as corporate loans.

Additionally, it enhanced subsidiary data consistency and established a verification system, while simultaneously improving the group's internal capital and integrated crisis situation analysis systems, upgrading Nonghyup Financial's credit risk management level to the next stage.

At the project completion report meeting held via video conference on the day, credit risk officers from the financial holding company and subsidiaries attended to share opinions on the system improvement results and future tasks, pledging to proactively respond to market changes through precise credit risk management.

Ban Chaewoon, Chief Risk Officer (CRO) of Nonghyup Financial Risk Management Division, emphasized, “Due to the ongoing uncertainty caused by COVID-19, it is essential to thoroughly manage credit risk by frequently checking potential non-performing factors to prevent credit risk expansion.” He added, “Following the early adoption of Basel III credit risk, we plan to fully establish the three major risk management systems according to Basel III standards by building the Basel III market and operational risk systems, which will be introduced in 2023, within this year.”

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