CCTV.com - CNTV English - CCTV News

S Korea's financial regulator unveils measures to normalize savings banks

07-04-2011 16:51 BJT

SEOUL, July 4 (Xinhua) -- South Korea's financial regulator unveiled Monday a package of measures to normalize the country's ailing savings banks.

The Financial Services Commission (FSC) said in a statement that it will inspect 85 local savings banks in July and August, which will focus on the capital adequacy ratios and the quality of assets.

Savings banks, whose capital adequacy ratios under the Bank for International Settlement (BIS) standards prove to be above five percent, will be classified as normally operating bank, and will receive public funds if they want to get it, according to the statement.

Banks, whose BIS ratios stand between three and five percent, will be granted up to six months for normalization, while those with the BIS ratios staying between one and three percent will be given up to one year.

However, savings banks with the capital adequacy ratio below one percent will be asked to submit plans for normalization, and if their plans are approved, they will be granted three months for normalization.

The FSC said it plans to impose no business suspension until inspection results are announced in late September.

South Korea has been struggling to normalize the ailing savings banks, whose asset quality has been deteriorating amid sluggish real estate markets. The delinquency rate of property-related loans at local savings banks reached 20.4 percent as of the end of March, up from 18 percent three months earlier.

Editor:Wang Xiaomei |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program