Financial Soundness of Korean Banks Ranks 71st among 77 Countries South Korea Ranks a Lowly 71st of 77 Countries in Terms of Financial Soundness of Banks, According to a Report Released Yesterday by Samsung Economic Research Institute (SERI)
Quoting the ratings of Moody's Investors Service Inc., Samsung said the financial soundness measures the extent to which banks of the 77 countries rated by Moody's can recover their loans.
Only four Korean banks -- Kookmin, Housing and Commercial, Korea First and Shinhan -- hold the seventh grade status in the nine grade rating of financial healthiness while the remaining Korean banks remain rooted at the bottom.
Samsung said Korean banks have an average rating of Ba2-Ba3 under the U.S. credit agency's standards, standing 52nd in the list.
Moody's has granted investment grade to Kookmin, Housing & Commercial, Shinhan and Korea Development banks, while Standard and Poor's (S&P) has given only Shinhan an investment grade rating since it sent all Korean commercial banks to the non-investment grade in the wake of the 1997 economic crisis, the institute said.
Samsung also said the proportion of non-accrual loans to entire loans held by Korean banks came to 6. …