For Korean bank treasuries, liquidity trumps profits

Korean banks are unlikely to take on new risks when it comes to managing their assets this year. "The first priority is liquidity," says Lee Sangwook, senior vice-president and manager of the international fixed-income portfolio at Shinhan Bank in Seoul. "The second is the quality of assets. The third is earning a return on investment." Since last year, banks' risk managers have focussed on safety, not profitability, when it comes to managing their treasury desks. Some of this is a ba…