KDB Future Strategy Research Institute announced on Oct. 15 that six South Korean banks put their names on the world’s top 100 bank list for 2018 of The Banker magazine.
On the list, KB Financial Group maintained its 59th place while Shinhan Financial Group rose three notches to 63rd and Hana Financial Group climbed two notches to 77th. On the other hand, Korea Development Bank, Woori Bank and Industrial Bank of Korea slid three, two and two notches to 64th, 91st and 95th, respectively.
The list included 41 Asian and Oceanian, 32 European, 20 North American, four Latin American and three Middle Eastern banks. The top 10 list consists of four Chinese, four U.S., one Japanese and one British banks as in the previous year.
The top five South Korean banks on the list are higher in asset quality yet lower in capital adequacy than the top five of the other countries. The non-performing loan ratio of the South Korean banks is 1.29 percent and those of the U.S. and British banks are 1.79 percent and 2.12 percent, respectively.
The South Korean banks’ average BIS capital adequacy ratio is 14.97 percent, higher than the Basel III requirement. Those of their U.S., British, Japanese and Chinese counterparts are 16.75 percent, 21.72 percent, 18.41 percent and 15.41 percent, respectively.