Korean banks are making the most of the delayed implementation of Basel III by raising cheaper regulatory capital. Fitch Ratings considers elements of the current fund-raising initiatives as pre-funding, as banks recognize the likelihood of increased costs of issuing Basel III-compliant capital securities amid continuing investor uncertainty about risk-pricing and the Point of Non-Viability (PONV). […]
Korean banks are making the most of the delayed implementation of Basel III by raising cheaper regulatory capital. Fitch Ratings considers elements of the current fund-raising initiatives as pre-funding, as banks recognize the likelihood of increased costs of issuing Basel III-compliant capital securities amid continuing investor uncertainty about risk-pricing and the Point of Non-Viability (PONV). […]