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profit shock, could double the amount of debt-at-risk held by non-SME firms and; (iii) exchange rate shocks appear manageable … given low FX debt and natural FX hedges. Under a downside macro-financial stress test scenario, non-SME credit losses would … total a touch over 2 percent of GDP. Bank stress tests suggest that the maximum cumulative bank losses from distressed SME …
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Korea entered the COVID-19 pandemic with sound macroeconomic fundamentals and a resilient financial system. The initial outbreak led to a sharp decline in economic activity and employment and generated substantial economic slack. With the help of an effective COVID-19 containment strategy and...
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