Japan’s recent massive earthquake has not triggered the much-feared outflow of foreign funds from the South Korean banking sector, the financial regulator said Wednesday.
“Following the massive Japan earthquake on March 11, the country has not suffered a particular difficulty regarding foreign funding and management of foreign currencies by local banks and domestic branches of foreign banks,” the Financial Services Commission (FSC) said in a report.
The local bank sector had a total of US$ 248.8 billion in foreign borrowing and deposits of foreign currencies as of March 20, up US$ 1 billion from March 10 before the earthquake struck Japan, the regulator said.
Even after the disaster, local banks’ foreign funding conditions remained undisrupted and the local banking sector did not show signs of foreign fund outflow, according to the FSC.
Domestic lenders and foreign banks’ local branches, meanwhile, held a total of US$ 214.5 billion in foreign currency assets, including foreign lending and holdings of foreign securities as of March 20, the FSC said.