[Korea Selected financial newspaper reporters] KEB Hana Bank showed an increase profitability, reduce risk compared to the risk-weighted assets (RWA) growth in net profit. Risk management in the banking sector tends to reduce corporate loans to increase the losses borne down and soundness concerns are also becoming prominent.
◇ banks, such as turning on monitoring non-performing assets
Risk-weighted assets yield (RoRWA: Return on Risk Weighted Assets) are indicators with a view to gauge the profitability risk compared. Each exposure risk weighted assets reflects a substantial risk by applying a risk weight to the (exposure amount) (RWA) as the denominator, you can get if you put the equation with the controlling shareholder net income in the molecule.
9 days four major banks (Shinhan · KB Kookmin · We · KEB one) business performance, according to the results of calculations based on the published data, KEB Hana Bank in December last year the end of risk-weighted assets, profit margin (RoRWA) the end of 2015 It showed a more than 3-fold improvement.
KEB, Hana Bank in the last reference in 2015 was estimated to be considerably lower three major banks (Kookmin, Shinhan · KB · us) than the margin of risk-weighted assets (RoRWA). KEB Hana Bank went on working to improve the capital adequacy ratio to risk-weighted assets management.
Large loan collapse is regarded as a typical margin of risk-weighted assets (RoRWA) management plan.
On the other hand, if one of the KEB Bank total loans increased 1.4559 trillion won last year eotneunde than 2015 dual corporate loans was 6.0031 trillion won decrease, rather than the household sector loans jumped one hundred million won 7000000004590. Increase in net income was also one molecule of shares. Last year, the controlling shareholder of KEB, Hana Bank net profit surged over 1 trillion 372.7 billion won in 2015 (421 billion won).
KEB, Hana Bank official said, "Integration synergies will translate into sales activities took place a qualitative improvement in the key interest rates were increased deposits, SME loans and household loans, while the loan portfolio also increased (P / F)".
It was changed for a loan breakdown only strategy the bank is not the only one KEB. Our banks, while corporate loans increased in total loans of 5.7698 trillion won in 2016 was 4.5605 trillion won decrease, household goddess earned a 10.3303 trillion won lanky neulmyeo health.
Bo was the Shinhan Bank increased total loans in the same period of 7.4157 trillion won, 5.54 trillion won the double accounted household goddess. KB 12 national banks one trillion 79.4 billion won share of loans Consumer loans Increase the reached 7.9205 trillion won.
In the banking sector the atmosphere to increase the interest in risk-weighted assets internally. Such as industry, company restructuring, US interest rates in a variety of internal and external variables 'risk management' is a situation emerged as a buzzword of the year.
Shinhan Bank official explained that "creating a risk-weighted asset index and check it monthly unaudited internal data on a quarterly basis and has to care."
Our bankers also pointed to "continual fear bad asset reductions and improved superior quality of assets through asset overweight, low utilization limit unused surplus reduction," the risk-weighted asset management plan.
◇ 'quantity than quality' capital requirements compared Strategy
Risk-weighted assets yield (RoRWA) is a favorable indicator the higher the share of profits in value compared to risk-weighted assets. High profitability compared to the risk, because it is also good means of capital allocation efficiency.
Banking industry officials emphasized that "it is necessary that the business strategy to focus on loan portfolio Operating margin adjusted for enhanced risk-weighted assets (RoRWA) strengthen the high-risk, low profitability loans and unused limit management."
Even as prudential capital ratios considered positive side management. Bank for International Settlements (BIS) In the calculation of capital adequacy ratio (numerator) / risk weighted assets (the denominator). Financial industry officials explained that "BIS ratio will also consider how to manage the ratio of regulatory capital increase because such methods are difficult to face the denominator of risk-weighted assets, capital improvements."
In overseas it should be classified as a building connected to the business performance indicators. Kim Suhyeon Shinhan Investment analyst "about the European global banks (IB) are extremely Shin Junghi and none of the risk-weighted assets yield (RoRWA) of the evaluation indicators of management transactions to increase the risk-weighted assets" and "This is the assigned sales targets to simply the volume (size) just off the behaviors to increase sales because jyeotgi explained that the most important to properly manage the risk compared to profitability in line with global capital regulations are gradually strengthening. "
In terms of international regulations to be prepared for situations in which a side expanding risk-weighted assets. Basel Committee on Banking Supervision (BCBS), because they promote the new regulations introduced this year for the purpose of mitigating the problem of excessive deviation between countries and banks in risk-weighted assets calculated for the BIS ratio denominator. Prohibit the current internal model used for the main exposure (exposure amount) of such Act massive and fortified than the risk weight is content to mandate the use of the standard model.
However, banking industry officials said that "regarding the discussed calculation method changed, but the lasting impact analysis conducted to discuss countermeasures at the present time it is determined to change the way the foreign banks delayed by opposition a difficult situation."
Lim Hyeongseok, Senior Research Fellow of the Korea Institute of Finance (KIF) is in the "Risk Management characteristics and implications of domestic banks' reports," domestic banks, the global financial crisis sikimyeo overall reduction in the total assets risk-weighted assets ratio economic systolic include safe haven, a diastolic There is a possibility to expand the total assets risk-weighted assets ratio when introducing each picked by increasing assets this year, the domestic outlook game gotta estimated to have entered a contraction phase will have upside potential high "and added," but the new regulations mainly risk-weighted assets since it is necessary to further strengthen the risk management, "he predicted.
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