ID :
183730
Mon, 05/23/2011 - 07:00
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https://oananews.org//node/183730
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Conditions for banks' foreign borrowing improve in April
SEOUL (Yonhap) - South Korean banks saw their conditions for foreign borrowing improve in April, overcoming difficulties triggered by the Japanese earthquake and nuclear crisis in March, the financial regulator said Monday.
The average short-term rollover rate by 16 local banks came to 63.2 percent in April, compared with 121.6 percent in March, the Financial Supervisory Service (FSS) said in a statement.
The rollover rate measures banks' foreign borrowing with a maturity of less than one year as a percentage of their maturing foreign debts with the same maturity. A fall in the rate means banks borrowed less foreign funds.
"The April decline is due mainly to an improvement in conditions of banks' foreign borrowing," the FSS said. "Amid heightened financial market risks in March, banks rushed to secure short-term foreign funds, pushing up the rollover rate in the month."
The average spread between local banks' foreign bonds and borrowing with a below one-year maturity and the benchmark London Interbank Offered Rate narrowed to 14.6 basis points in April from 23.2 percent basis points in the previous month, the FSS said.
The fall means banks paid less to secure the same amount of overseas borrowing.
The average foreign liquidity rate stood at 100.5 percent last month, up from 102 percent from a month earlier, the FSS said.
The ratio, a barometer of banks' foreign liquidity health, measures liquid foreign assets that are due in three months as a percentage of liquid foreign liabilities with the same maturity.
The average short-term rollover rate by 16 local banks came to 63.2 percent in April, compared with 121.6 percent in March, the Financial Supervisory Service (FSS) said in a statement.
The rollover rate measures banks' foreign borrowing with a maturity of less than one year as a percentage of their maturing foreign debts with the same maturity. A fall in the rate means banks borrowed less foreign funds.
"The April decline is due mainly to an improvement in conditions of banks' foreign borrowing," the FSS said. "Amid heightened financial market risks in March, banks rushed to secure short-term foreign funds, pushing up the rollover rate in the month."
The average spread between local banks' foreign bonds and borrowing with a below one-year maturity and the benchmark London Interbank Offered Rate narrowed to 14.6 basis points in April from 23.2 percent basis points in the previous month, the FSS said.
The fall means banks paid less to secure the same amount of overseas borrowing.
The average foreign liquidity rate stood at 100.5 percent last month, up from 102 percent from a month earlier, the FSS said.
The ratio, a barometer of banks' foreign liquidity health, measures liquid foreign assets that are due in three months as a percentage of liquid foreign liabilities with the same maturity.
