Banking Sector Holds Meeting with BoK Governor Lee Chang-yong: "Limited Domestic Impact from SVB Incident"

by Kwon Hyeonji

Published 24 Apr.2023 18:37(KST)

"Bank of Korea and Financial Institutions Must Work Together"

Invitation Meeting with Bank Governors by Lee Chang-yong, Governor of the Bank of Korea. Photo by the Korea Federation of Banks

On the 24th, the banking sector held a roundtable meeting with Lee Chang-yong, Governor of the Bank of Korea, to review domestic and international financial market trends following the Silicon Valley Bank (SVB) incident. Governor Lee assessed that the impact of the SVB incident on the domestic financial market has been limited so far.

At the meeting, Governor Lee stated, "It is necessary for the Bank of Korea, relevant authorities, and financial institutions to work together in preparation for the possibility of similar incidents occurring in the future."

Governor Lee also mentioned that at last week's G20 (Group of Twenty) meeting and the International Monetary Fund (IMF) and World Bank Group (WBG) Spring Meetings, discussions were held on how to conduct monetary policy amid conflicting goals of price stability and financial stability.

Kim Kwang-soo, Chairman of the Korea Federation of Banks, expressed gratitude for the Bank of Korea's efforts to maintain financial stability following the recent SVB and Credit Suisse (CS) incidents, including the three-month extension of measures to expand eligible collateral securities for loans and adjustments to the small and medium-sized enterprise loan ratio. Additionally, he requested that the banking sector's current issues be considered together to enhance banks' competitiveness.