South Korean banks and insurers are raising their risk management efforts as the local currency remains weak against the US dollar, Pulse News reported Monday.

Shinhan Financial Group's (KRX:055550) Shinhan Bank initiated early credit evaluations for corporate clients with loans maturing in the first half of 2025, focusing on financially stable firms to improve credit ratings and boost its Common Equity Tier 1 (CET1) ratio, the report said.

Firms with weaker outlooks will be added to a watchlist with reduced exposure. With stress buffer capital regulations set to raise CET1 ratio requirements to 11.5% later this year, financial groups aim for a 13% CET1 ratio to enhance shareholder returns, it said.

Shares of Shinhan Financial Group fell 1% at market close on Tuesday.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)