South Korea's financial watchdog said Tuesday it will step up efforts to help local banks adopt new global rules on bank capital standards in 2022.
Global financial regulators agreed on the new banking regulations, known as Basel III, in 2017 but finally endorsed a revision of some rules earlier this week at a meeting of the Basel's oversight body attended by governors and heads of supervisory bodies, the Financial Supervisory Service said.
Basel said the revision will "result in a weighted average increase of about 22 percent in total market risk capital requirements." A previous rule agreed in 2016 was estimated to result in a 40 percent hike.
Authorities said the revised framework will come into force on Jan. 1, 2022.
The new rules, including revisions of the calculation systems for capital requirements and credit risks, were set in the aftermath of the 2008-09 global financial crisis.
In a separate statement, the FSS said it will hold close consultations with local banks to help them adopt new rules without a hitch.
Yoon Suk-heun, governor of the financial regulator, is at the Basel meeting this week, it said. (Yonhap)