South Korea is relaxing rules for savings banks to open new branches in order to improve consumers' access to loans.

The country's Financial Services Commission said Aug. 14 that the country's Cabinet approved an amendment to the Enforcement Decree of the Mutual Savings Banks Act that will reduce the amount of capital savings banks need to increase to set up new branches. The amendment will take effect Aug. 21.

Currently, savings banks in South Korea are required to increase equity capital by between 12 billion won and 14 billion won for each new branch, depending on the region. The amendment will halve the required amount for savings banks.

As of Aug. 14, US$1 was equivalent to 1,129.19 South Korean won.