south korea will ask its banks to hold more liquid assets starting a gradual exit from regulatory easing on capital requirements as local markets recover from the pandemic and a recent credit crunch authorities will begin normalizing rules for banks’ liquidity coverage ratio from july the financial services commission said in a statement tuesday the lcr ratio will be raised to 95 between july and december from 925 now with the ratio for 2024 to be decided at the end of this year eased rules on the loantodeposit ratio will also normalize from next month the withdrawal of easing on the key liquidity coverage rules introduced during the covid era and extended after a developer’s default caused a liquidity crisis shows authorities’ regained confidence in the country’s financial stability in a sign of continued caution regulators will maintain a broader market stabilization program to guard against future uncertainties korea’s bond market has steadied after authorities pledged billions of dollars in support last year when a theme park developer’s missed debt payment caused the worst market rout since the global financial crisis yields on benchmark threemonth commercial paper have dropped to the lowest since october while the won is asia’s bestperforming currency versus the dollar this quarter the separate market stabilization program which includes a bond support fund currently has sufficient support capacity of more than 35 trillion won 27 billion according to the fsc statement