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[Apha Biz=(Chicago) Reporter Paul Lee] The Bank of Korea will revise the Financial Stress Index (FSI), a crisis warning system that comprehensively evaluates financial stability, for the first time in 12 years.
"We are seeking to revise the index to reflect the environment that has changed since the development of the FSI in 2011," a high-ranking official at the Bank of Korea said on the 21st. "We will unveil the revised index as early as this year."
According to the 2012 Financial Stability Report, the FSI judges whether there is a crisis in the financial sector through 20 detailed indicators, including financial market indicators such as credit spread, and real indicators such as economic growth rate and inflation. If the index exceeds 8 points, a "caution" alarm sounds, and if it exceeds 22 points, a "crisis" alarm sounds.
The Bank of Korea plans to add indicators that will reflect the changed financial situation, except for indicators that are less descriptive among detailed indicators.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
