Banking on Risk: The Dynamics of Structured Products

This chapter examines the interplay between financial markets and bank health, particularly in Korea, discussing the risks linked to structured products and the oversight by regulators. It highlights the complexities of managing risk exposure to exotic investment products and the implications of external market shifts, particularly focusing on the influence of U.S. indices like the S&P 500. The conversation underscores the potential for significant market disruptions due to these investment products, emphasizing the fragility of the current financial landscape amidst rising volatility and recession concerns.