A deputy governor of the Bank of Korea(BOK) called on the country to avoid amplifying economic risks by over-interpreting them or underestimating the nation's response capacity.

BOK Deputy Governor Lee Jong-ryeol made the call on Monday in a rare posting on the central bank's official blog.

Lee said that the restoring force of the nation's financial system is more sound than ever, while the government and the BOK are reinforcing policy efforts to minimize the impact of risks. He said current risks are assessed to be manageable.

As for the financial stress index(FSI) surviving above 22 last October and November, the threshold for the “danger” level, Lee said the indicator only shows short-term instability in the financial system, and has since receded.

Lee also mentioned the continued fall of the financial vulnerability index(FVI), a mid- to long-term indicator of instability, citing the narrowing gap between basic economic conditions and asset prices and a slowdown in rising household debt.

Source: KBS World Radio