Proceedings report from The Asian Banker’s "The Korea Banking Risk Dialogue 2012" on South Korean banks' exposure to international funding and the domestic OTC derivatives market.
The global macroeconomic volatility has caused increasing financial disintermediation of capital markets in favour of banks, as a result of investors’ increased risk-aversion.
US Senate investigations into HSBC reveal poor anti-money laundering controls, business with banks linked to terrorism, and ignoring of sanctions against Iran.
Municipal bonds and private-public partnerships are common alternatives of government financing to avoid excessive borrowing, but fiscal prudence remains crucial for budgetary balance.
