Key facts
- Five major South Korean banks recorded record non-operational deposit outflows in Q2.
- Banks increased reliance on institutional funding as retail deposits declined.
- NongHyup Bank's stressed outflows rose 14.4% to 48 trillion won ($35.1 billion).
Five major South Korean banks experienced record outflows of non-operational deposits in the second quarter, a key metric for the liquidity coverage ratio (LCR). This trend indicates a shift towards institutional funding as retail deposits decreased.
NongHyup Bank reported the most significant increase in stressed outflows, with a 14.4% rise to 48 trillion won ($35.1 billion). This situation highlights a growing reliance on wholesale funding sources by these financial institutions.