SEOUL, May 21 (Reuters) - South Korea's financial regulator said on Tuesday authorities had decided from July to partially normalise bank liquidity rules that had been eased during the pandemic.
There is a need to resume gradual normalisation of the liquidity coverage ratio (LCR), or share of net cash outflows each bank must hold as highly liquid assets, to 97.5%, from the current 95%, through the second half of this year, the Financial Services Commission said in a statement.
The announcement came after the governor of the Financial Supervisory Service said earlier this month that authorities would normalise the rules as part of a gradual exit from regulatory easing on capital requirements imposed during the COVID-19 pandemic. (Reporting by Jihoon Lee Editing by Ed Davies)
