market volatility-financial sector
Market volatility has only limited impact on financial companies: regulator
SEOUL, April 8 (Yonhap) -- Market volatility caused by the monthlong crisis in the Middle East has been delivering a limited impact on financial companies, the financial regulator said Wednesday, adding that it is still closely monitoring risk factors.
The Financial Services Commission (FSC) said it is checking liquidity levels and asset soundness of financial companies, while the Financial Supervisory Service (FSS) is conducting stress tests on the companies in various scenarios.
So far, volatility in the currency and bond markets has been posing a limited impact on the financial companies, but thorough preparations should be in store for more severe fallout from a drawn-out U.S.-Iran war, the FSC said.
Financial authorities have been stepping up efforts to prevent problems in shaky sectors from spilling over into the broader financial system, and prod financial firms to strengthen their asset quality and liquidity levels.
The FSC said in March alone, banks provided some 5 trillion won (US$3.38 billion) in new financing, while extending maturities for 4.7 trillion won worth of loans to the Middle East crisis-hit companies.
Earlier, major banks said they would provide more than 53 trillion won in new loans for the companies affected by the regional conflict, and also extend loan maturities and seek ways to reduce their financial burden.
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