S.Korea may ease liquidity requirement rules for financial companies

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.

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