Financial Regulatory Forum

S.Korea says to guide banks to retain more profits

By John Manley
December 10, 2009
capital adequacy | South Korea

    SEOUL, Dec 10 (Reuters) – The South Korean government will guide local banks to retain more profits next year, instead of paying dividends to shareholders, to help bolster their capital.
   “In order to prepare for a possible increase in bad loans and to undertake swift restructuring, (banks) need to replenish their capital to a substantial extent,” the government said on Thursday in a joint statement from the economy ministry.
   The government will also come up with measures to control banks’ loan-to-deposit ratio to stabilise their funding structure.
    (Reporting by Kim Yeon-hee; Editing by Ken Wills)
  ((yeonhee.kim@thomsonreuters.com; +82 2 3704 5646; Reuters Messaging: yeonhee.kim.reuters.com@reuters.net))
  ((If you have a query or comment on this story, send an email to newsfeedback.asia@thomsonreuters.com))
Keywords: KOREA BANKS/ 
  
Thursday, 10 December 2009 08:56:40RTRS [nTOE5B909S] {C}ENDS

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