ID :
19946
Wed, 09/17/2008 - 11:17
Auther :
Shortlink :
http://m.oananews.org//node/19946
The shortlink copeid
(LEAD) BOK set to inject liquidity into market
(ATTN: CHANGES headline, lead, paras 2-5 to highlight comments by top central banker)
SEOUL, Sept. 17 (Yonhap) -- South Korea's top central banker said Wednesday the bank will make efforts to provide liquidity at an appropriate time following the collapse of Lehman Brothers Holdings Inc.
On Monday, Lehman Brothers, once America's fourth-largest investment bank, filed
for bankruptcy protection after amassing debts worth US$60 billion caused by
soured real estate holdings.
The demise of Lehman sent shockwaves across global markets, with South Korea's
key stock index tumbling 6.1 percent to an 18-month low on Tuesday. On the same
day, the local currency also plunged to a 49-month low against the U.S. dollar on
deepening woes over economic instability following the collapse of Lehman.
"The central bank will spare no effort to supply liquidity at the right time
by buying government bonds directly from the market if needed," Bank of
Korea (BOK) Gov. Lee Seong-tae told the National Assembly.
His remarks came one day after the BOK said it would inject dollars into the
domestic won-dollar swap market if necessary, in a potential move to calm market
turmoil.
South Korea's financial watchdog said earlier in the day that local financial
markets "overreacted" to the collapse of Lehman Brothers on Tuesday,
adding that South Korean firms have enough capacity to cope with overseas
instability.
"U.S. financial market jitters could affect the South Korean market
temporarily. But local financial firms have enough capacity to cope with overseas
instability, and the impact (of the Lehman demise) should be limited in the local
market," Kim Yong-hwan, standing commissioner of the Financial Services
Commission (FSC), told a radio program.
The watchdog said it will check any additional risks of local firms' exposure to
Lehman Brothers. According to the FSC, South Korea's financial companies invested
about $720 million in securities linked to Lehman.
"Local brokerage houses may face possible losses linked to Lehman's equity
linked securities. The watchdog plans to check over further risks," Kim
said.
sooyeon@yna.co.kr
(END)
SEOUL, Sept. 17 (Yonhap) -- South Korea's top central banker said Wednesday the bank will make efforts to provide liquidity at an appropriate time following the collapse of Lehman Brothers Holdings Inc.
On Monday, Lehman Brothers, once America's fourth-largest investment bank, filed
for bankruptcy protection after amassing debts worth US$60 billion caused by
soured real estate holdings.
The demise of Lehman sent shockwaves across global markets, with South Korea's
key stock index tumbling 6.1 percent to an 18-month low on Tuesday. On the same
day, the local currency also plunged to a 49-month low against the U.S. dollar on
deepening woes over economic instability following the collapse of Lehman.
"The central bank will spare no effort to supply liquidity at the right time
by buying government bonds directly from the market if needed," Bank of
Korea (BOK) Gov. Lee Seong-tae told the National Assembly.
His remarks came one day after the BOK said it would inject dollars into the
domestic won-dollar swap market if necessary, in a potential move to calm market
turmoil.
South Korea's financial watchdog said earlier in the day that local financial
markets "overreacted" to the collapse of Lehman Brothers on Tuesday,
adding that South Korean firms have enough capacity to cope with overseas
instability.
"U.S. financial market jitters could affect the South Korean market
temporarily. But local financial firms have enough capacity to cope with overseas
instability, and the impact (of the Lehman demise) should be limited in the local
market," Kim Yong-hwan, standing commissioner of the Financial Services
Commission (FSC), told a radio program.
The watchdog said it will check any additional risks of local firms' exposure to
Lehman Brothers. According to the FSC, South Korea's financial companies invested
about $720 million in securities linked to Lehman.
"Local brokerage houses may face possible losses linked to Lehman's equity
linked securities. The watchdog plans to check over further risks," Kim
said.
sooyeon@yna.co.kr
(END)
