The International Monetary Fund has given Korea's banking sector a vote of confidence.
According to a stress test reported in its Financial System Stability Assessment... the IMF says Korean banks are "resilient" to financial risks,... citing improved capitalization in the sector following the financial crisis in 2008.
However, the agency warned that the country's non-banking sector is increasingly vulnerable,... saying it lacked preparedness to deal with risks.
The IMF recommended stricter inspections to improve transparency and strengthened monetary and criminal penalties in the financial sector.
The report added that the nation's Financial Services Commission and Financial Supervisory Service needed to maintain political neutrality.
