South Korea’s bank soundness rules are needed for financial stability, but speakers at a Korea Institute of Finance seminar warned Basel 3’s risk-weighted framework could strengthen banks’ preference for low-risk assets and curb productive finance such as corporate lending. They called for a more refined capital regulation system that keeps global consistency while addressing weak points in the final Basel 3 package. Discussions also flagged the growing impact of the output floor and potential double regulation within financial holding groups.

BitMEX co-founder Arthur Hayes forecast bitcoin could reach $125,000 by the end of the year, citing expanding U.S. credit, higher defence spending and policy structures supporting the Treasury market. Hayes said changes to the enhanced supplementary leverage ratio reduced reserve burdens for major banks, with S&P Global estimating the adjustment could enable about $1.3 trillion in new lending. He also cited shifting market focus and expectations for continued liquidity.