[2022 National Audit] Yoon Hee-seong, KDB Bank President, "BIS Ratio May Fall Below 13% by Year-End"

[Image source=Yonhap News]

[Asia Economy Reporters Song Hwajeong and Yoo Jehoon] The capital adequacy ratio (BIS ratio), which indicates the financial soundness of the Export-Import Bank of Korea, is declining due to the rise in the won-dollar exchange rate. Yoon Heesung, president of the Export-Import Bank, predicted that it could fall below 13% by the end of this year.

On the 19th, during the National Assembly's Planning and Finance Committee audit, President Yoon reported on the bank's business status and revealed this outlook.

President Yoon stated, "This year, the loan balance increased to 121 trillion won, and with the won-dollar exchange rate rising above 1,400 won, the BIS ratio is shrinking," adding, "There is a possibility it will fall below 13% by the end of this year."

The bank plans to strengthen its capital base through issuing subordinated bonds and other measures. President Yoon explained, "As part of securing capital to maintain the BIS ratio, we plan to issue new subordinated bonds up to 300 billion won in the fourth quarter of this year," and "This is expected to have a 0.2 percentage point positive effect on the BIS ratio." He added, "However, if large-scale support issues such as nuclear power plant orders arise, we will explore various capital expansion measures."

According to data submitted by the Export-Import Bank to Assemblyman Kang Junhyun of the Democratic Party during the Planning and Finance Committee, as of the end of June, the bank's BIS ratio was 14.1%, down 0.7 percentage points from six months earlier. The foreign currency portion of the bank's credit risk-weighted assets reaches 70%. The internal management target for the bank's BIS ratio this year is above 13%.

This content was produced with the assistance of AI translation services.