South Korea's financial watchdog on Monday announced its plans to guarantee foreign currency deposits up to 50 million won (38,461 U.S. dollars) if a financial institution goes bankrupt.
Currently, the government guarantees only Korean currency-denominated deposits of maximum 50 million won (38,461 U.S. dollars) per individual.
"The government plans to provide such a guarantee for foreign currency deposits as well," said an official at the Financial Services Commission (FSC). "As soon as a related law is revised, the government plans to implement it."
The FSC said the move is a part of an effort to secure liquidity for lenders suffering from dollar shortage in the wake of the collapse of U.S. investment bank Lehman Brothers Holdings Inc. and the subsequent credit crunch.
Source: Xinhua
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