Woori Financial, Obtains Internal Ratings-Based Approach Approval... BIS Ratio Up by 1.3%P

Approval in the Shortest Period After Holding Company Launch

[Asia Economy Reporter Kim Jin-ho] Woori Financial Group announced on the 2nd that it has obtained final approval for the Internal Ratings-Based (IRB) approach from the Financial Supervisory Service.

After receiving approval last June for the small and medium-sized enterprises (non-audit corporations, sole proprietors) and household sectors, the group has now received final IRB approval for the external audit companies and credit card sectors. This marks the shortest approval period among financial holding companies, achieved in just 2 years and 10 months since the launch of Woori Financial Holdings in 2019.

Since the establishment of the holding company, Woori Financial Group formed a task force team (TFT) with subsidiaries such as Woori Bank and Woori Card to obtain IRB approval. They completed the overall group risk management system, including the establishment of group risk governance and risk management systems. The Financial Supervisory Service highly evaluated Woori Financial’s efforts in building the risk management system and appears to have approved the use of the IRB approach in the shortest period.

A Woori Financial Group official explained, “With this IRB approval, the BIS ratio is expected to increase by about 1.3 percentage points,” adding, “The burden of complying with regulatory ratios has been eased, enabling us to continuously support companies struggling with management difficulties due to COVID-19 in line with government policies.”

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