Shinhan Financial downgraded to Neutral from Buy at BofA

BofA analyst Jeehoon Park downgraded Shinhan Financial to Neutral from Buy with a price target of $32.31, down from $38.46. The analyst believse the major Korean banks will likely have to yield to pressure from the government and regulators to lower spreads between lending and deposit rates and provide social service. The regulators are looking to increase minimum capital requirements and to review the dividend payouts and share buybacks by the banks, which is an effective postponement of the shareholder-return plans announced by the banks during the Q4 results, the analyst tells investors in a research note.