Regulator to focus on market risk management, financial stability

The brand of Monetary Providers Commision is seen on this Dec. 2, 2019 file photograph. Korea Instances photograph by Jang Jae-jin

Korea’s monetary regulator mentioned Wednesday that it’ll redouble efforts to deal with volatility within the monetary market in addition to to curb family money owed this yr.

In a joint coverage report, the Monetary Providers Fee (FSC) mentioned that the monetary markets are extremely prone to face elevated volatility given the incoming Trump administration’s shift in a slew of insurance policies, an financial slowdown and the political upheaval stemming from the impeachment of President Yoon Suk Yeol following his short-lived martial legislation declaration.

The FSC mentioned it would implement an around-the-clock monitoring system to detect and take care of market volatility and can step in to reduce market fluctuations if crucial.

Specifically, some 100 trillion received value of market stabilization measures shall be in place to reduce any market volatility.

As well as, the monetary regulator mentioned it would implement stricter curbs to rein in family loans.

Increased charges shall be utilized to mortgage loans from July by reviewing debtors‘ debt service capability, which can work to chop mortgage demand.

Banks‘ excellent family loans elevated 1.9 trillion received in November from a month earlier, rising for an eighth consecutive month, however it logged the slowest development since March.

Additionally, the FSC will speed up efforts to restructure mission financing (PF) loans, one of many nagging factors that might sharply damage the nation’s monetary stability.

By June, the regulator plans to recapitalize, type out, or write off 16.2 trillion received value of PF loans, which is equal to 77.5 % of soured PF loans. (Yonhap)