South Korea's central bank chief said on Thursday the bank needs to prepare for emergency situations as it cannot rule out credit crunch risks in local financial markets given uncertainties in global financial markets amid the spread of the coronavirus.
FILE PHOTO: The logo of the Bank of Korea is seen on the top of its building in Seoul, South Korea, July 14, 2016. REUTERS/Kim Hong-Ji
SEOUL - South Korea’s central bank chief said on Thursday the bank needs to prepare for emergency situations as it cannot rule out credit crunch risks in local financial markets given uncertainties in global financial markets amid the spread of the coronavirus. “If the situation worsens, the Bank of Korea could also review lending money to non-bank financial institutions to stabilise the corporate bond market,” BOK Governor Lee Ju-yeol said in a statement.
Lee’s remarks came hours after the bank accepted 5.25 trillion Korean won in bids from financial institutions for 91-day repurchase agreements at a rate of 0.78%, a move intended to calm money markets hammered by the coronavirus pandemic.
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