Bank Woes Started Long Ago
A recent report filed by officials at the Bank of Korea pointed out that the profitability of domestic commercial banks fell largely before the foreign exchange crisis started.According to the report, the percentage of allowance for bad debts and net profit before taxes account for in total assets of eight banks dropped from 1.85 percent in 1990 to 1994 to 1.12 percent in 1995 to 1996 before falling to minus. The report suggested that banks should reform their asset management methods to increase profitability. It also suggested that banks with large amounts of outstanding loans to large companies should increase their capital.
with the Korea JoongAng Daily
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