FSB says bad loan woes linger in global market

SEOUL, July 22 (Yonhap) -- Members of the Financial Stability Board (FSB) shared the view that vulnerabilities from non-performing loans remain in the global market, as they met in Chengdu, China, this week, South Korean participants said Friday.

South Korea joined the session, hosted by the People's Bank of China a day earlier, ahead of this weekend's meeting of G20 finance chiefs and central bankers in the Chinese city.

The members of the FSB, an international consultation body on regulatory and other related policy issues, noted the overall financial system "functioned effectively" amid market turmoil following the British vote to lead the European Union, according to South Korea's Financial Services Commission.

The global financial system, they agreed, is more resilient as a result of the regulatory reforms introduced following the 2008 financial crisis.

But it has yet to address concerns about non-performing loans and incomplete bank balance sheet repair, they pointed out.

They also vowed to continue close monitoring of the market situation to take swift actions if a crisis arises.

The FSB, based in Basel, Switzerland, has 24 member states and 10 international institutions such as the OECD, IMF and World Bank. It works to coordinate their regulatory, supervisory and other financial sector policies in the interest of financial stability.

South Korea became a member of the FSB in 2009.

lcd@yna.co.kr
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