South Korea is ready to inject liquidity into the banking system if needed to avert liquidity shortages after turbulence on global financial markets, officials said Monday.
The move followed an emergency meeting of senior officials from the Finance Ministry, the central Bank of Korea and the Financial Supervisory Commission, a financial watchdog. Worries about problems in the US mortgage market have caused liquidity to dry up in money markets as private banks withhold funds, prompting US and other central banks to offer extra cash.
"If it spreads further into other overseas financial institutions or other financial products, we will take necessary measures," Vice Finance and Economy Minister Kim Seok-Dong told reporters. If there is any sign of a credit crunch in the domestic financial system, the government will "immediately" inject liquidity, he said.
Comments
Comments are closed.