BOK voices woes over financial imbalance, rising debt burden
The Bank of Korea (BOK) said Tuesday it needs to raise its guard against accumulated financial imbalances, the rising debt burden in tandem with higher interest rates, and potential volatility in the financial and currency markets. In its financial stability report, the BOK said the country's financial system remains relatively stable on the back of the resilience of financial institutions and…
The Bank of Korea (BOK) has expressed concerns about financial imbalances and rising debt burdens, warning of potential market volatility. In a recent financial stability report, the BOK highlighted the need for vigilance, citing the resilience of financial institutions as a mitigating factor. However, the central bank admitted that vulnerable sectors could still face weaknesses, and the risks of market instability may be increasing.
This comes amid a consistent rise in home prices, with expectations of further increases remaining high. According to the BOK, household debt as a percentage of the country's GDP was 85.3% at the end of March, surpassing the long-term average of 84%. Despite economic growth, the BOK acknowledged the mounting pressure on financial stability.
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- BOK voices woes over financial imbalance, rising debt burden en.yna.co.kr
- BOK voices woes over financial imbalance, rising debt burden koreatimes.co.kr
