South Korea yesterday moved to boost the stability of its financial system by urging banks to balance loans with deposits.
The country's financial regulator plans to issue rules next year to force banks to reduce their loan-to-deposit ratios to 100 per cent by the end of 2013.
Korean banks have among the highest loan-to-deposit ratios in the region. “There is nowhere in Asia like it,” said Duncan Wooldridge, a UBS economist.
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