...Viability Rating-Driven IDRs: The Long-Term IDRs of Shinhan Bank is driven by its Viability Rating (VR), which reflects its strong franchise, prudent risk appetite, stable management team and strong capitalisation. It also takes into account the bank's challenging operating environment, marked by slow economic growth and low interest rates, sound loan quality, modest liquidity and funding. Strong Local Franchise: Shinhan, designated by the Korean regulator as a domestic systemically important bank in December 2015, held about 13% and 16% of the system's total assets and deposits at end-2015. Its parent Shinhan Financial Group (SFG) is the Korea's largest bank holding company in terms of asset size (KRW390tn at end-1H16); Shinhan accounts for about 70% of SFG's consolidated assets. Stable, Consistent Performance: Fitch Ratings believes Shinhan will continue to deliver a broadly stable and consistent performance, despite the challenging operating environment, given Shinhan's strong risk control,...
