Domestic Banks ’ Foreign Currency - denominated AssetsForeign currency - denominated assets 1 of eighteen domestic banks are expected to grow 5 . 3 % in 2013 , according to their internal plans . A similar level of growth for nominal economic growth ( 5 . 3 %) 2 , export ( 5 . 5 %) and import ( 4 . 0 %) is expected in 2013 . However , total assets including won - denominated assets are expected to grow at a slower pace by 4 . 1 % than foreign currency - denominated assets . Trade financing is expected to grow at the fastest by 9 . 3 %, signaling that most banks are expected to expand trade financing . According to banks ’ internal plans , long - term debt is likely to decline from last year , but exceed the maturing debt this year . Banks are expected to have net borrowings like the previous year , with the rollover ratio of long - term debt at 115 . 4 % However , they are expected to refrain from financing their assets by short - term debt and total debt will not exceed the level of the previous year . In addition , despite a slowdown in some industries , the ratio of substandard or below assets to total assets denominated in foreign currency is expected to stand at 0 . 89 % 3 , as favorable as last year . Meanwhile , domestic banks are planning to expand their overseas operations this year , opening new branches about 1 . 5 times more than that of the previous year ( 11 ) , to diversify revenue streams . Most of new operations will be established in Asia and some in North America . Assessment and Supervisory DirectionDomestic banks ’ foreign currency funding and management will be stable in 2013 as they are expected to have net borrowings and a favorable substandard or below asset ratio . However , they still need to prepare for the potential risks to the soundness of foreign currency assets as global and domestic risk factors stay such as a protracted euro zone debt crisis and escalating North Korea - related risk and the economic recovery is still faltering . First , the FSS will ask banks not to expand foreign currency assets under management excessively , while continuing to boost foreign currency liquidity in a conservative perspective . However , banks will be encouraged to use their excess capital to support small and medium sized exporters unless it does not increase systemic risk . Second , banks will be encouraged to increase long - term financing , benefiting from the low cost of funding and improving debt structure . Banks will be advised to issue debts with longer maturity and have a diversified maturity profile , restricting the rise in the share of short - term debt in total debt . Third , banks are advised to secure foreign currency liquidity in a stable manner by expanding foreign currency deposits and seeking diversification of lenders . The financial regulator will increase the share of foreign currency deposits and foreign currency liquidity in the key performance indicators ( KPI ) 4 , a measurement of banks ’ performance , while supporting foreign branches of domestic banks in expanding their operational base . Meanwhile the FSS will support overseas expansion of domestic banks to help develop their global management skills in the longer term . Banks may consider various options for effective localization such as opening a foreign subsidiary through M & As , as well as a branch or office . Contact Person : Park Mi - Kyung Head of Public Affairs Planning Team Public Affairs Office Financial Supervisory Service Tel : + 82 - 2 - 3145 - 5803 Fax : + 82 - 2 - 3145 - 5808 E - mail : pmk 620 @ fss . or . kr [ Source : Financial Supervisory Service ] [ ⓒ Maeil Business Newspaper & mk . co . kr , All rights reserved ]