Shinhan to bolster investment banking business
Cho Yong-byoungBy Lee Kyung-min Shinhan Financial Group will inject 660 billion won ($560 million) into Shinhan Investment, a move to strengthen its brokerage unit as a major global investment bank, the group said Friday. The amount will help Shinhan Investment meet the 4 trillion won equity capital requirement, a prerequisite to seeking a license from the financial authorities to become a “mega investment bank.” Only a bank designated as such is allowed to issue a promissory note with the maximum limit of 200 percent of its equity capital. The unit only had 3.37 trillion won as of 2018. The group agreed to approve the plan at a board meeting, Friday, with the whole process to be completed in the latter half of 2019. Of the total, 460 billion won will be drawn from the group's reserves, with the remaining 200 billion won from hybrid bonds to be issued soon. “The approval will help the firm take the next step to a promissory note business which we issue relying on our reputation in the market,” a Shinhan Financial Group official said. “Funds drawn through
May 10, 2019By Lee Kyung-min