South Korea eases capital rules for banks

South Korea's Financial Services Commission (FSC) has eased capital rules for the country's banks to help them maintain their capital flow with minimal disruptions. South Korea’s top financial regulator expects banks to lead the way in restoring market calm, said FSC chairman Kim Joo-hyun. Kim said their efforts, along with banks, could be a big help for the stability of the wider financial market. Kim recently met with the leaders from 20 local banks and a group representing them, the Korea Federation of Banks. Kim Kwang-soo, the KFB chief, said banks will boost liquidity by buying commercial paper, asset-backed commercial paper, and repurchase agreements, or repos. In response, the regulator said state-run companies in the meantime would also take out bank loans instead of issuing bonds.