(Bloomberg) South Korea is emerging as a closely watched weak link in the $63 trillion world of shadow banking.Most Read from BloombergTrump Has Only $6.8 Million for Legal Fees With Trial UnderwayRay Dalio’s Famous Trade Is Sputtering and Investors Are BailingStocks Climb as US Earnings Kick Into High Gear: Markets WrapTikTok to Remove Executive Tasked With Fending Off US ClaimsRussians Transform Dubai as They Flee Putin’s War: Photo EssayReal estate exposure has been showing cracks at home
Shadow Banking Stress in South Korea Sends Warning to Global Investors bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.
The FOMC statement and dot plot were viewed as somewhat more hawkish than expected. System credit growth has slowed - and the risk of a precipitous lending slowdown is rising. Read more.
At a seasonally-adjusted and annualized (SAAR) $3.284 TN pace, Non-Financial Debt (NFD) growth slowed from Q2’s SAAR $4.318 TN and Q1’s SAAR $5.438 TN.
South Korea’s Legoland is an unlikely poster child for the global struggle to fight inflation while maintaining financial stability.But a default on 205 billion won (US$155mil or RM682mil) worth of debt by the theme park’s developer triggered the worst meltdown in South Korea’s credit market since the global financial crisis. And as interest-rate hikes batter real estate markets around the world, it’s a reminder that even relatively safer financial systems like South Korea’s face threats of contagion.