Another vital step is to quickly shut down or salvage heavily indebted companies and banks.
The biggest boom is in loans to highly indebted companies.
Losses on loans to highly indebted companies would be greatest in a recession.
Subsequently, the already indebted company had to lease in order to revert the lack of equipment.
Analysts think that other indebted companies will face bankruptcy under similar conditions.
Its loans to highly indebted companies total some $3.6 billion, making it the seventh-most-active bank in that business.
Loans to highly indebted companies were extremely profitable in the late 1980's because of their high interest rates and fees.
These investors expect that many heavily indebted companies will face certain bankruptcy in the next few years.
Suddenly, Goldman was the majority owner of a heavily indebted company in a slow-growth business.
Besides threatening the survival of Korea's heavily indebted companies, higher interest rates also raise production costs.