Suhyup Bank Receives IRB Approval: "Capital Adequacy Ratio Improves by 3 Percentage Points"

Sh Suhyup Bank announced on February 2 that it has received approval from the Financial Supervisory Service to adopt the Internal Ratings-Based (IRB) approach for credit risk.

The IRB approach allows banks to assess credit risk internally, but it can only be introduced after meeting the strict requirements set by the authorities.

Suhyup Bank expects that the adoption of the IRB approach will improve its Basel-based capital adequacy ratio by more than 3 percentage points, enabling the bank to achieve capital soundness on par with or exceeding that of major commercial banks.

Improvement in the capital ratio can enhance the bank’s external credibility and ability to raise capital, creating a virtuous cycle that leads to increased profitability over the medium to long term.

Prior to receiving IRB approval, Suhyup Bank spent four years overhauling its risk management system across all areas of the bank, including evaluation models, data, infrastructure, organization, personnel, and risk management culture.

In addition, last year the bank achieved asset growth of approximately 3 trillion won, pre-tax profit of more than 300 billion won, acquired an asset management company, and expanded its artificial intelligence (AI) and platform businesses, thereby driving both risk management and business innovation.

Bank President Shin Hakki stated, "With our fundamentals now strengthened, Suhyup Bank will be able to play a greater role in Korea’s economy and financial sector. We will do our utmost not only to expand productive finance, but also to become a better bank and provide better financial services."

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