SEOUL, July 14 (Xinhua) -- South Korean banks posted an improvement in foreign currency liquidity conditions in June on the back of progress in overseas borrowing conditions, the financial watchdog said Tuesday.

    According to the Financial Supervisory Service (FSS), 18 local banks' foreign currency liquidity ratio, measuring the percentage of a bank's foreign currency assets maturing in three months or less to its foreign currency debts, topped 104.4 percent as of end-June.

    The June figure was an increase of 1.7 percentage points from a quarter earlier, the FSS said, adding that local banks are recommended to keep the ratio above 85 percent.

    The rise followed an improvement in overseas borrowing conditions, as local banks have been making their own efforts to borrow overseas to tackle the cash-squeezed situation, the watchdog said.

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