Bank of Korea has set up a system for the early detection of overseas financial instability as part of efforts to better cope with potential external shocks, Yonhap News Agency reported Aug. 1.

Under the system, about 40 employees of the central bank will meet with the relevant officials of financial institutions, international organizations and major central banks, as well as scholars, in order to gather information to assess the resilience and vulnerabilities of the financial system.

Risk factors need to be detected at an early stage so that the central bank has sufficient time to analyze data and various reports, a Bank of Korea official said.