South Korean regulator has reportedly asked major commercial banks to prepare USD 4bln financing for potential support to credit unions facing customer withdrawals, according to Reuters sources
Important
SourceNewsquawk
SectionAsian News
- An official at the Financial Services Commission confirmed banks had been asked to prepare liquidity to aid MG Community Credit Cooperatives (MGCCC).
- Depositors were lining up last week to withdraw funds from an MGCCC branch after local media reported a rise in non-performing loans to real estate projects.
- Sharply rising rates and cooling property market have raised concerns about the potential impact on South Korea - Asia's fourth largest economy.