S.Korea to extend loosened liquidity coverage rules for local banks

S.Korea to extend loosened liquidity coverage rules for local banks

S.Korea to extend loosened liquidity coverage rules for local banks The extensions were meant to address any potential funding stress that may arise in times of volatility    A man walks along the Cheonggye stream in central Seoul, South Korea January 25, 2017. SEOUL - South Korea's financial regulator said on Wednesday it will extend loosened liquidity requirements for local banks including the foreign exchange liquidity coverage ratio through March 2021.The Financial Services Commission said the extensions were meant to address any potential funding stress that may arise in times of volatility.The regulator said in March the FX LCR will be relaxed to 70% from 80% temporarily, meaning banks will be required to hold less foreign assets that can readily be converted into cash in times of stress. (Reporting by Cynthia