FSC chief expresses concerns over global debt and calls for cooperation to stem crisis
Koh Seung-beom, head of the Financial Services Commission, speaks at a ceremony in Seoul on October 26, 2021 to mark Finance Day. The government has designated the fourth Tuesday in October as a day of remembrance to raise awareness of finance and encourage workers in the financial sector. (Yonhap)
Koh Seung-beom, head of the Financial Services Commission (FSC), made the remark on Thursday as he joined a virtual plenary meeting of the Financial Stability Board (FSB), an organization made up of regulators from the Group of 20. country to discuss cooperation.
“There has always been an excessive accumulation of debt behind previous financial crises,” Koh said, quoted by his Seoul office. “It is necessary to control the increase in global debt.”
“As financial interconnectivity has deepened, the chances are greater that a crisis could spread across sectors and borders. He declared, stressing the need for global cooperation to stem such a transmission of crisis.
The FSB meeting came amid growing concerns over debt and inflation, as major economies injected a large amount of liquidity to support growth in the face of weak demand due to the global pandemic. of coronavirus.
Participants cited rising household and corporate debt and recent interest rate hikes by major economies as potentially destabilizing the global financial system, according to the FSC.
The FSB has agreed to have more discussions on what is known as “over-indebtedness” and to exchange views on how to support a smooth transition to normalcy, the FSC said. (Yonhap)