Preemptive Risk Management
Despite rising default and delinquency rates, IBK maintained its credit cost at the prior-year level (0.48%) and significantly reduced nonperforming loans through close collaboration across relevant departments, sustaining a risk management approach focused on internal stability.
As of the end of 2025, the BIS total capital ratio stood at 14.78%, up from the previous year and 3.30%p above the regulatory requirement.
Building the IBK Integrated Early Warning System
In response to changes in its customer portfolio and the expansion of non-face-to-face lending, the bank initiated the redevelopment of its "Retail Credit Scoring Model" and built an "Integrated Early Warning System" incorporating a three-stage default prediction model. The bank combined base and machine learning models with user-customized features—including a comprehensive dashboard, Insight Reports, AI audit reports, and risk factor simulations—advancing its asset quality management environment.
Building Operational Risk Management and Crisis Response Capabilities
IBK reinforced the roles and responsibilities of individual business units in operational risk management and established group- and department-level monitoring systems to improve overall efficiency in managing operational risks. The bank expanded its coverage of emerging risk management, including ICT and third-party risks, and advanced a data-driven continuous monitoring framework to proactively respond to evolving supervisory and regulatory requirements. IBK also broadened the target of SME credit risk assessments to identify companies showing early signs of financial distress and prevent potential defaults through timely restructuring measures. To further enhance crisis preparedness, the bank established a comprehensive market crisis monitoring process that automates the tracking of key market indicators and P&L simulations, supporting prompt and informed management decision-making.
