Lee Bok-hyun summons heads of major financial firms "Financial authorities to implement necessary measures for market stability"

Financial Supervisory Service Governor Lee Bok-hyun is delivering a welcoming speech at the 'Ministry of Industry and Financial Supervisory Service Jointly Hosted Business Restructuring-Banking Sector Linked Strategy Meeting and Business Agreement Ceremony' held on the 6th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Ji Yeon-jin] On the 1st, Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), emphasized, "In a situation where market uncertainty is high due to domestic and external risks, financial authorities will implement necessary measures to stabilize the market."

Governor Lee made these remarks at a financial market review meeting attended by CEOs of banks, securities firms, and credit finance companies, requesting cooperation on policies to stabilize the bond market of financial companies.

He urged, "Financial companies should also strengthen their loss absorption capacity to prepare for risks, actively provide funding support to sound companies experiencing temporary liquidity difficulties, and make efforts to monitor vulnerable borrowers."

At the meeting, the presidents of KB Kookmin Bank and Shinhan Bank, CEOs of Mirae Asset Securities, Korea Investment & Securities, Samsung Securities, KB Capital, Hana Capital, and Executive Director of Hyundai Capital attended.

The attendees agreed, according to the FSS, that since the government's market stabilization measures were announced on the 23rd of last month and policy funds were executed, the market interest rates, which had been rising sharply since September, have slowed down, easing anxiety. However, they judged that market uncertainty remains due to domestic funding market tightening such as the widening credit spreads and ongoing caution regarding the U.S. Federal Open Market Committee (FOMC).

Additionally, major banks raised the need to expand asset management of short-term financial products, and securities firms and capital companies requested that detailed procedures be managed to ensure that liquidity support policies for small and medium-sized financial companies operate effectively.

An FSS official stated, "All attendees agreed that during such difficult times, it is necessary for financial authorities and the financial industry to cooperate and respond calmly to market instability."

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