South Korean banks battling struggles in the shipbuilding and shipping markets are set for a helping hand from regulators.
Financial Services Commission chairman Yim Jong-yong described present restrictions as excessive and pledged to relax legislation.
"(The government) will lay the groundwork for domestic banks to raise their investment appeal and compete in the global market by eliminating factors causing an excessive burden for capital increase and worsening profitability," he said, according to Yonhap.
A key change is Seoul’s move to class loan loss reserves as common capital stock, the news wire says, explaining present laws have been a burden on banks fighting to restructure yards and shipowners.
