Korean household default risk to rise on new lending rules: Moody’s

07 Mar 2012

Household default risks could rise as Korea’s Financial Supervisory Commission (FSC) encourages non-banking financial institutions to maintain their loan-to-deposit ratio below 80%, says the ratings agency.

For mutual credit institutions – organisations that specialise in taking deposits and lending for populace and small enterprises, primarily agricultural businesses, in Korea – the measures include a requirement that they keep their loan-to-deposit ratio (LDR) below 80% and require that those currently in breach of this limit ...

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