Bank of Korea Governor Shin Says Stock Market Volatility Poses Limited Systemic Risk on July 16

NDAQ3.80%
According to Yonhapnews on July 16, Bank of Korea Governor Shin Hyun-song said recent stock market volatility poses limited systemic financial risk, as equity markets have fewer direct pathways to the broader financial system compared to other liquid assets. Speaking at the Monetary Policy Committee press briefing, Shin noted that the wealth effect from rising stock prices is modest—a 1 million won increase in stock value correlates to only approximately 13,000 won in additional consumer spending. He cited the early 2000s Nasdaq bubble collapse as a historical precedent where significant stock market decline did not trigger systemic risk.
Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.
Comment
0/400
No comments