Korea Investment & Future, "banks, Daewoo Shipbuilding remove uncertainty positive."

[Korea nine hyerin financial newspaper reporter] Mirae Asset Securities, Daewoo and Korea the 24th DSME restructuring naenwatda the evaluation will have a positive impact on the banking sector. The loss less than expected to remove uncertainties in the mid- to long-term problems in the banking sector, we believe that favorable.

Yesterday, the Financial Services Commission has announced a 'DSME restructuring plan. According to related information, corporate bonds and CP balance of 1.5 trillion won will be invested conversion by 50%, loans of banks is 80%. Development Bank and the Export-Import Bank is owned 100% conversion of existing loans 1.6 trillion won, and supporting new funds 2.9 trillion won.

The new RG (advance refund guarantee) were first issued by the commercial banks to $ 500 billion in new supply haejugo RG when exhausted this limit, the Korea Development Bank and Export-Import Bank to $ 20 billion. However, the bailout plan will be approved from the prerequisite April sachaegwonja be meeting with banks in the middle of. City Finance Committee rejected the position that the treatment of intermediate forms of court workouts and a 'P Plan (prepackaged plan)'.

This treatment was assessed for Mirae Asset dwaetdago short-term losses but the burden is rising, long-term uncertainty and concerns are alleviated.

The researchers ganghyeseung of securities Daewoo burden of new funding possibilities and related provisions of the Shipbuilding & Marine Bank is concerned, has been lingering as a potential risk factor, said, increases the 'provision Accumulation rate to 70-80% of earnings, the right side can be a burden however, he explained that in the future, because the limited provisions, such as loss recognition, long-term perspective is positive, uncertainty is reduced.

If banks are planning to increase the simple total household allowance against exposures Accumulation rate without considering the credit conversion factor to 20%, Hana Financial 72 billion won, KB Financial 45 billion won, will recognize additional provisioning costs SFG 30 billion won. Assuming planning to increase up to 70-80%, Hana Financial is W450bn, KB Financial Group for 300 billion won, Shinhan Financial Group will require additional provisioning up to 1,000 billion.

River Research Institute "Fortunately, Daewoo Shipbuilding and related provisioning burden is estimated that the profit buffer to offset a portion being 'said' solid core interests and together, favorable exchange non-monetary in accordance with the fluctuation foreign currency assets in terms of profit, sale one-off gains, including possible stock sale profit also added that due to possible expectations.

Korea Investment & Securities has emphasized that there is no maintains Overweight on the banking sector, the Company tappik DGB Financial Group and Shinhan Financial Group DSME compared to other banks losses are limited or exposure. The loss less than what it concerns an assessment of the banking sector positively.

Paektu researcher at the brokerage has no '' This restructuring plan is generally in the removal for commercial banks uncertainties dimensional positive action ', saying,' concerns and new funding for Daewoo Shipbuilding and Marine Engineering of banks otherwise, of the original treatment plan which was mentioned in one explained that because the 'P plan' (60% to 70% provisioning) restructuring measures in the voluntary agreement than this one pas lines provided.

Also, adding that "DSME in a situation recruit the necessary funding shortfall by 2018, even in spite of the new RG issuing banks and the drying vessels may reduce the existing RG exposure is greater as India positive.



Financial Daily Economic News FNTIMES - unauthorized reproduction for commercial purposes in accordance with the Copyright Act, No copying, distribution,
Copyright ⓒ Korea's financial newspaper & FNTIMES.com