[Economic Term] Capital A

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Today's economic term is Capital A.

Capital A is a capital account on the balance sheet of a domestic branch of a foreign bank.
① In order to establish and operate a domestic branch of a foreign bank, the head office sells foreign currency funds such as the Bank of Korea and supplies them to the branch.
② Funds transferred from the reserves of the domestic branch of the relevant foreign bank
③ This includes funds transferred from the retained earnings of a domestic branch of a foreign bank already established in Korea in order to establish an additional domestic branch of a foreign bank.
Capital A is managed by each branch limited to the amount recognized by the Financial Services Commission, but the Capital A of each foreign bank branch must be more than 3 billion won.

In summary, it corresponds to a domestic branch of a foreign bank. The law categorizes Fund A into three categories. Each branch must have more than 3 billion won.

It is said that when a foreign bank increases Capital A, it is interpreted as an attempt to speed up domestic operations.

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