Hana Bank to get capital injection from its parent

SEOUL, Dec. 4 (Yonhap) -- Hana Bank, South Korea's fourth-largest lender, said
Thursday that it will get 950 billion won (US$645 million) from its parent Hana
Financial Group Inc. this year to bolster its deteriorating financial health.
Hana Financial plans to raise 1 trillion won by selling debts next week, 950
billion won of which will be used to jack up the capital adequacy ratio of its
banking unit.
South Korean lenders are making strong efforts to shore up their falling capital
adequacy ratios, as fears grow that an economic slump will cause many loans to go
bad.
The average capital adequacy ratio at the country's 18 banks dropped to 10.79
percent at the end of September from 11.36 percent three months earlier.
The South Korean economy, Asia's fourth-largest, grew 0.5 percent in the third
quarter of the year from the previous three months, the slowest pace since 2004.
sam@yna.co.kr
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