Domestic slowdown not severe: S.Korean banks

SEOUL, May 16 (Reuters) - The heads of South Korea's major commercial banks told the country's central bank governor on Friday that any fallout from the domestic economic slowdown would likely be limited to companies dependent on the local market.

However, chief executives of Kookmin Bank (060000.KS: Quote, Profile, Research, Stock Buzz) and six other leading financial institutions agreed during their regular meeting with Bank of Korea Governor Lee Seong-tae that high oil prices were contributing to inflation and downside risks for Asia's fourth-largest economy.

The comments come after Governor Lee acknowledged that the economy was losing steam and was unlikely to grow by more than 4.5 percent this year after expanding 5.0 percent in 2007. The central bank held interest rates steady at 5.0 percent for the ninth consecutive month last week. (Reporting by Lee Jin-joo; editing by Jonathan Hopfner)