Resumen de Korea's capital relaxation is no boost to banks' loss absorption.
The article discusses the minimal effect of capital ratio relaxation rules on Korea's efforts to reduce the loan losses of banks. It notes that the rules allow banks to designate loan loss as common capital stock to increase protection against potential losses. Analysts say that the rule will not have an immediate impact on the profitability of banks since the earning surplus for loan loss only improves capital ratio.
