SEOUL (Reuters) -South Korea may ease some of the liquidity requirement rules on financial companies as there are signs of stress in the short-term money market, the head of the top financial regulatory agency said on Thursday.
Financial Services Commission (FSC) chief Kim Joo-hyun said his agency was watching the “increased volatility in the short-term money market” and would strengthen its response to stop any instability from spreading.
The agency was considering easing some of the liquidity-related requirements on financial companies and expanding a bond market stabilisation fund to help ease the stress in the short-term money market.
(Reporting by Choonsik Yoo; editing by Christian Schmollinger and Stephen Coates)
