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Financial Linkages Across Korean Banks

Author

Listed:
  • Burcu Aydin
  • Mr. Myeongsuk Kim
  • Mr. Ho-Seong Moon

Abstract

This paper assesses the interconnectedness across Korean banks using three alternative methodologies. Two methodologies utilize high frequency financial data while the third uses bank balance sheet data to assess banks' bilateral exposures, systemically vulnerable banks, and systemically risky banks. The analysis concludes that while Korean banks are interconnected, both the financial risk and contagion risk from such interconnectedness have declined significantly in the aftermath of the global financial crisis.

Suggested Citation

  • Burcu Aydin & Mr. Myeongsuk Kim & Mr. Ho-Seong Moon, 2011. "Financial Linkages Across Korean Banks," IMF Working Papers 2011/201, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2011/201
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    Cited by:

    1. Mr. Nicolas Arregui & Mr. Mohamed Norat & Antonio Pancorbo & Ms. Jodi G Scarlata & Eija Holttinen & Fabiana Melo & Jay Surti & Christopher Wilson & Rodolfo Wehrhahn & Mamoru Yanase, 2013. "Addressing Interconnectedness: Concepts and Prudential Tools," IMF Working Papers 2013/199, International Monetary Fund.
    2. Ms. Hélène Poirson & Jochen M. Schmittmann, 2013. "Risk Exposures and Financial Spillovers in Tranquil and Crisis Times: Bank-Level Evidence," IMF Working Papers 2013/142, International Monetary Fund.
    3. International Monetary Fund, 2012. "Qatar: Selected Issues," IMF Staff Country Reports 2012/019, International Monetary Fund.
    4. Ali Alichi & Mr. Cheol Hong & Mr. Sang Chul Ryoo, 2012. "Managing Non-Core Liabilities and Leverage of the Banking System: A Building Block for Macroprudential Policy Making in Korea," IMF Working Papers 2012/027, International Monetary Fund.

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