Banks are expected to escape further fallout following the bankruptcy of Hanjin Shipping – but its bond holders are likely to be less fortunate.

As Moody’s confidently predicted banks had taken all the pain they will feel, reports in Korea suggested bond holders faced a hit of more than $1bn.

Industry sources told the Yonhap news service Hanjin’s bond holders, including Korea Development Bank and other state-run debt guarantee agencies, faced a loss of KRW 1.2