Six of South Korea’s leading banks on Thursday signed a preliminary deal to set up a private bad bank, in efforts to spark competition in a market for toxic assets that is monopolised by a state-run bad bank. The banks, led by Shinhan and Kookmin, expect to set up the bad bank by the end of September, run it until 2014 and clear up some Won5,000bn ($4bn) of troubled loans. The other banks involved are Hana, Woori, the Industrial Bank of Korea and Nonghyup.

This entry was posted by Gwen Robinson on Friday, August 21st, 2009 at 4:44 and is filed under Capital markets. Tagged with Kookmin, Shinhan. Edit this entry.