Spanish Banks May Need Global Bailout, Korean Regulator Says

South Korea’s Financial Services Commission Chairman Kim Seok Dong comments on Spain’s banking industry and the European debt crisis. Kim spoke to reporters today in Seoul.

On Spanish banking crisis:

“If it becomes hard for Spain to rescue its banks with its own budget, then the international community may need to get involved.

‘‘There’re views that the crisis in Spain’s banking industry may be more severe than the country’s government can handle. Should things go that way, Europe and the IMF may need to provide bailout funds. If that happens it will squeeze the overall European banking industry and bring much economic difficulty.”

On South Korea’s crisis preparedness:

“We’ve taken preemptive steps since last year such as restructuring the savings bank industry, checking the growth of household debt and boosting banks’ foreign-currency liquidity. It’ll take a while until the crisis in Europe is resolved.”

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