Home > Business > Finance

Market volatility has had limited impact on financial companies: Regulator

Published: 08 Apr. 2026, 14:06 Updated: 08 Apr. 2026, 15:54

Foreign tourists exchange money at a currency exchange office in Jung District, central Seoul, on March 31. [NEWS1]

Market volatility caused by the monthlong crisis in the Middle East has delivered a limited impact on financial companies, the financial regulator said on Wednesday, adding that it is still closely monitoring risk factors.

The Financial Services Commission (FSC) said that it is checking liquidity levels and asset soundness of financial companies, while the Financial Supervisory Service (FSS) is conducting stress tests on companies for various scenarios.

So far, volatility in the currency and bond markets has posed a limited impact on the financial companies, but thorough preparations should be in store for more severe fallout from a drawn-out Iran war, the FSC said.

Financial authorities have been stepping up efforts to prevent problems in shaky sectors from spilling over into the broader financial system and to prod financial firms to strengthen their asset quality and liquidity levels.

The FSC said that in March alone, banks provided some 5 trillion won ($3.38 billion) in new financing while extending maturities for 4.7 trillion won worth of loans to companies hit by the Middle East crisis.

Earlier, major banks said that they would provide more than 53 trillion won in new loans to companies affected by the regional conflict, as well as extend loan maturities and seek ways to reduce their financial burden.

In addition, some 2.4 trillion won worth of corporate bonds and commercial papers were purchased last month via market stabilization schemes, the FSC said, noting companies may face further difficulties in raising funds amid high market rates.

The yield on benchmark three-year Treasurys stood at 3.451 percent on Tuesday, sharply up from 2.953 percent at the end of last month, and that on AA-rated three-year corporate bonds rose to 4.107 percent from 3.476 percent over the cited period, according to the regulator.

Yonhap