Korean Banks To Beef Up Forex Liquidity

South Korea’s financial regulator has said banks need to build adequate foreign-exchange liquidity.

South Korea’s financial regulator has said banks need to build adequate foreign-exchange liquidity, Bloomberg reports. Their borrowing structure also needed to be better equipped for a global financial crisis in the future or an extended external instability. The regulator said funding sources ought to be diversified and control of liquidity at the lenders’ overseas branches tightened. It said the country had in place “solid” contingency plans following the experiences of the 1997 and 2008 financial crises.

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