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S.Korea says may help banks boost capital ratios
Reuters - 1 hour 42 minutes ago
SEOUL, Nov 14 - South Korea's government may draft pre-emptive measures to help domestic banks boost their capital ratios if necessary, although ratios at local lenders are still sound, the country's top financial regulator said on Friday.
"If a global economic recession raises bad debts, BIS ratios could fall further... The government may draft pre-emptive measures, if necessary, considering economic uncertainties," Jun Kwang-woo, chairman of the Financial Services Commission, said in an interview with local KBS radio, referring to the capital adequacy ratio guided by the Bank for International Settlements.
South Korean banks' average capital ratio fell to the lowest in seven and a half years at the end of September due to investment losses sparked by the global financial turmoil and an increase in risky assets, data showed on Tuesday.
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