Fisher Funds Administration Most popular Information: Financial institution deposits rise 3.two pct in H1 - Business venture - Administration

Fisher Capital Management Most up-to-date News: Bank deposits rise 3.2 pct in H1

SEOUL, July 12 (Yonhap) -- South Korean banks' deposits elevated 3.2 percent in the initial half as the financial recovery and larger deposit rates lured buyers into comparatively protected assets, industry information showed Tuesday.

Deposits held by local six banks including top lender Kookmin Bank amounted to 810.5 trillion won (US$761 billion) as of finish-June, up 24.8 trillion won from the finish of final year, according to the information.

5 main banks saw their deposits rise in the initial half, but deposits at Korea Exchange Bank (KEB), controlled by U.S. buyout fund Lone Star Funds, declined in the cited period, spawning marketplace issues that its capacity to do business may very well be dented.

Deposits at KEB, South Korea's No. 5 lender, reached 67.5 trillion won as of the finish of final month, down 1.8 trillion won from six months earlier. Compared with a year ago, its deposits fell by 1.97 trillion won, information showed.

The information came as the protracted sale of KEB and Lone Star's receipt of a record interim dividend are raising uncertainty surrounding the bank's business.

Hana Economic Group Inc. agreed on Friday to extend a deal to invest in KEB within six months at a lower price of 4.41 trillion won amid the regulator's delay in its critique of Lone Star's eligibility as the top shareholder of KEB.

KEB's selection to pay out a quarterly dividend brought on Lone Star to rake in dividends worth 496.9 billion won. The selection invited public criticism that the fund is attempting to exit the Korean marketplace after fattening its pockets.

But an official at KEB stated that the decline in deposits primarily resulted from seasonal components, not from a consumer exodus, adding that given the size of its assets, the volume of deposits and loans remained at an suitable level.

KEB's total assets stood at 106.2 trillion won at the finish of March, up 6.8 percent from 3 months earlier. KEB's marketplace share in foreign exchange markets accounted for 47.5 percent as of finish-Could, up from 43.5 percent the prior month.

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