- Unlike other Asian jurisdictions, Korea delayed
its implementation of Basel III because of concerns that
advanced economies had not yet implemented their Basel III
- Korea’s capital requirements are
largely similar to that specified in the international Basel
- However the Financial Services Commission is
contemplating buffers for domestic systemically important
- Korean banks are well-capitalised so market
participants do not expect them to issue contingent
convertible bonds (CoCos) in the near future.
Although Korean banks are generally well-capitalised, it is
feared that the implementation of Basel III later this year
will rein in their growth.
Although Korea was scheduled to implement the Basel III
guidelines at the start of 2013, it delayed implementation in a
last-minute announcement. In May, Korea’s
financial services regulator, the Financial Services Commission
announced it would implement Basel III on December 1
This gave Korea’s banks extra time to...