Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 189

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 189
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 Liquidity ratio |     |                                         |       |     |         |        |     |          | 354.5% |     |          |        |     |           |        |     |        |       |     |         |        |     |       |        |

Shinhan Securities manages its liquidity risk for its Won-denominatedaccounts by setting a limit of W300 billion on each of its seven-day, one-monthand three-month liquidity gap, a limit of 119% on its one-monthand three-months liquidity ratios and a limit of W70 billion on its liquidity VaR. As for its foreign currency-denominated accounts, Shinhan Securities manages the liquidity risk on a monthly basis in compliance with the guidelines of the Financial Supervisory Service, which requires the seven-dayand one-monthmaturity mismatch ratios to be 0% and -10%or higher, respectively, and the three months liquidity ratio to be 80% or higher. Our other subsidiaries fund their operations primarily through call money, bank loans, commercial paper, corporate debentures and asset-backed securities. Our holding company acts as a funding vehicle for long-term financing of our subsidiaries whose credit ratings are lower than the holding company, including Shinhan Card and Shinhan Capital, to lower the overall funding costs within regulatory limitations. Under the Monopoly Regulation and Fair Trade Act, however, a financial holding company is prohibited from borrowing funds in excess of 200% of its total stockholders’ equity. In addition to liquidity risk management under the normal market situations, we have contingency plans to effectively cope with possible liquidity crisis. Liquidity crisis arises when we would not be able to effectively manage the situations with our normal liquidity management measures due to, among other reasons, inability to access our normal sources of funds or epidemic withdrawals of deposits as a result of various external or internal factors, including a collapse in the financial markets or abrupt deterioration of our credit. We have contingency plans corresponding to different stages of liquidity crisis: namely, “alert stage,” “imminent-crisis stage” and “crisis stage,” based on the following liquidity indices:

| • |     | indices that reflect the market movements such as interest rates and stock prices; |

| • |     | indices that reflect financial market sentiments, an example being the size of money market funds; and |

| • |     | indices that reflect our internal liquidity condition. |

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Operational Risk Management

The Basel Committee defines operational risk as the risk of loss resulting from inadequate or failed internal processes, people