[2025 Audit] Rhee Changyong: "Shadow Banking Risks Growing... Joint Inspection Authority Needed for Non-Banks"

Bank of Korea Governor Rhee Changyong stated on the 20th, "Financial instability stemming from non-bank institutions is becoming more significant than that from banks," adding, "To ensure financial stability, it is necessary to have at least the minimum authority to conduct joint inspections and request data regarding non-bank financial institutions."

Yonhap News Agency

Governor Rhee made these remarks while attending the National Assembly's Strategy and Finance Committee audit, held at the Bank of Korea headquarters in Jung-gu, Seoul, on this day.

He expressed concern, saying, "Shadow banking is considered the greatest risk factor not only in Korea but also worldwide," and added, "As the economy becomes more digitalized, the linkages with non-bank institutions are increasing, and in fact, many of the risks currently emerging are occurring within the non-bank financial sector."

Governor Rhee stressed, "For the sake of financial stability, it is urgent for the Bank of Korea to at least have the authority to conduct joint inspections or request data, so that it can supervise and prevent systemic risks," and added, "When it comes to macroprudential policy, we need a system where we are not just providing advice but also jointly making policy decisions."