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.