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Liquidity Coverage Rule Relaxation Extended

SOUTH KOREA

South Korea announced it has extended an easing of liquidity coverage ratio regulations for banks to end of September, a six-month extension from initial deadline of end-March. The requirements were eased in April last year, allowing banks to hold lower amounts of high-quality liquid assets that can be easily converted into cash amid increased market anxiety caused by coronavirus outbreak. Under the less stringent rules, FX liquidity coverage ratio for banks was set at 70% vs 80% previously; overall LCR requirement lowered to 85% from 100%

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