Korea: C Agricole, UOB Breach FX Rules

The South Korean branches of Credit Agricole and United Overseas Bank (UOB) were penalized for breaching the ceiling for foreign-currency derivatives contracts, Bloomberg reports. The Financial Supervisory Service slashed the foreign-currency forward limit at the French bank’s Seoul branch by $260 million for two days after finding the bank’s ceiling was higher than the authority’s requirement by $130 million in October.

UOB’s local branch’s ceiling was reduced by $7 million for two days in the same month after it exceeded the limit by $7 million. Foreign bank branches are required to cut currency derivatives to 250% of equity capital and local banks to 50%.

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