F&Guide "Financial Stress Index Stable at End of Last Month, Expected to Rise This Month"

[Asia Economy Reporter Minji Lee] Financial information specialist FnGuide announced on the 8th that the Financial Stress Index (FSI) stood at 0.29 as of the end of last month, down 0.09 from the end of the previous year, maintaining a stable level.

The Financial Stress Index has been published monthly by FnGuide since November 2020. It is an indicator quantitatively analyzing 12 factors including the decline and volatility of stock indices, exchange rate volatility, credit spreads, foreign exchange reserves, and stock market trading volume, developed to assess crisis situations in South Korea's financial sector. The higher the index value, the greater the risk, and if it exceeds 1, it indicates that the financial market has entered a crisis phase requiring active response.

Although the spread of the Omicron variant, Russia's invasion of Ukraine, and rising raw material prices have increased volatility in the won-dollar exchange rate and stock indices, a comprehensive analysis of the 12 factors suggests that until the end of February, these factors had little impact on stress in South Korea's financial market.

FnGuide explained, "However, since March, the stock index has sharply declined, and the won-dollar exchange rate and oil prices have surged, so the FnGuide Financial Stress Index is very likely to rise again."

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