Pepper’s South Korean bank affected by new regulations

Company News

by Kathy Skantzos

Pepper Group (ASX:PEP) has been advised by South Korea’s regulator that its South Korean mutual savings bank, Pepper Savings, is affected by changes to regulations surrounding BIS capital ratios.

The Financial Supervisory Service has advised the bank will be required to increase their BIS ratios by at least 8 per cent.

The requirement will apply to all South Korean mutual savings banks with total assets of more than one trillion won, approximately $1.1 billion.

The regulation will be effective from 1 January 2018.

Pepper Savings Bank has recently agreed to a Memorandum of Understanding with the regulator in relation to its required BIS ratio.

Shares in Pepper Group (ASX:PEP) are trading up 0.29 per cent to $3.50.
 

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.