Newsletter May 2005: Big drop in Korean banks’ Basel II ratios unlikely

SEOUL—The capital ratios of South Korean banks could come under some pressure when they adopt the new Basel capital rules, probably at the end of 2007. But capital ratios do not now seem likely to display the kind of falls that once seemed on the cards, according to a report by rating agency Standard and Poor’s. In general, the agency’s message is that South Korean banks are making steady progress. The overall outlook, it says, “is positive.”