top of page

South Korea to revert from its relaxed banking regulations from July

South Korea’s Financial Services Commission (FSC) has announced it will gradually revert from its relaxed regulations on banks from July 2023, amidst the global banking upheaval. The loan-to-deposit ratio requirement, eased to 105% from 100% due to a domestic credit crunch, will be normalised. Meanwhile, the liquidity coverage ratio (LCR) requirement will rise from 92.5% to 95% for H2 2023. Further LCR adjustments, loosened during the pandemic, will be considered at year-end based on market conditions. The FSC assures it will promptly enact necessary measures, like a pause on normalisation or easing of regulations, in case of an unexpected financial market crisis.


bottom of page