| Description |
1 online resource (41 pages) |
| Series |
IMF country report, 1934-7685 ; no. 15/5 |
|
IMF country report ; no. 15/5.
|
| Contents |
Cover; Contents; Glossary; Preface; EXECUTIVE SUMMARY; TABLES; 1. Recommendations; INTRODUCTION; A. Past Experience in Crisis Management; B. Korean Financial System; BOXES; 1. Policy Measures Initiated in the Wake of the 2008 Global Ffinancial Crisis; LEGAL AND INSTITUTIONAL FRAMEWORK FOR CRISIS MANAGEMENT; A. The Framework; B. Interagency Cooperation and Coordination; 2. Interconnectedness of Authorities' Decision-Making Bodies; CRISIS PREPAREDNESS AND PREVENTION FRAMEWORK; A. Systemic Risk and Financial Stability Assessment; B. Financial Safety Net |
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3. Deposit Insurance Protection (at end-2012)4. Deposit Insurance Premium Rates per Financial Sector Segment; C. Supervisory Framework for Problem Banks; 5. Corrective Action Framework for Banks and Bank Holding Companies; D. Contingency Plans; 2. Contingency Planning in Korea; CRISIS MANAGEMENT FRAMEWORK; A. Systemic Liquidity in Money and Securities Markets; B. Deposit Insurance and Guarantee; C. Public Financial Support; 3. Use of Public Funds to Support the Financial System; FINANCIAL INSTITUTIONS RESOLUTION; A. Resolution Measures for Insolvent Banks; B. The Least Cost Principle |
| Summary |
Korea experienced significant financial distress in the late 1990s along with some of its Asian neighbors. The authorities' experience in handling this crisis and the experience in handling the fallout from the global financial crisis in 2007-08 helped them establish a broad crisis management framework in Korea. Improving and formalizing the framework for crisis management would help preserve and build upon institutional memory. Authorities can consider formally setting up an apex forum for leading the inter-agency cooperation and coordination work on crisis preparedness and crisis management. With a view to avoid duplication, the authorities may consider upgrading the Macroeconomic Financial Meeting (MEFM) with participation by the heads of the Ministry of Strategy and Finance (MOSF), Financial Services Commission (FSC), Financial Supervisory Service (FSS), Bank of Korea (BOK), and Korea Deposit Insurance Corporation (KDIC) as members, and by including crisis preparedness and crisis management as an explicit mandate. The essential elements of a financial safety net are available in Korea, and the Emergency Liquidity Assistance (ELA) framework and deposit insurance system can be improved to make the safety net more responsive. For ELA, this can be achieved by reviewing and revising the legal and procedural aspects to remove any scope for delays in actual disbursement of funds. For deposit insurance system, improvements can be made by bringing the deposit insurance fund out of deficit, and assuring a back-up funding. The financial safety net is well supported by an efficient framework of financial sector supervision. While the corrective action framework has some of the main elements in place it can, among others, be improved in the following areas for better effectiveness: (a) reviewing the triggers for corrective actions and improving their objectivity to enable timely intervention, including even before banks breach regulatory thresholds; and (b) putting in place norms and guidance determining the use of the powers to postpone or suspend corrective actions |
| Notes |
"January 2015." |
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"December 2014"--Page 2 of pdf |
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"Prepared by the Monetary and Capital Markets Department, IMF and the Financial and Private Sector Development, World Bank."--Page 2 of pdf |
| Bibliography |
Includes bibliographical references |
| Notes |
Online resource; title from pdf title page (IMF Web site, viewed January 14, 2015) |
| Subject |
International Monetary Fund -- Korea
|
| SUBJECT |
International Monetary Fund fast |
| Subject |
Crisis management -- Economic aspects -- Korea
|
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Financial crises -- Korea -- Management
|
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Financial risk management -- Korea
|
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Crisis management -- Economic aspects -- Law and legislation -- Korea
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Deposit insurance -- Risk management -- Korea
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Banks and banking -- State supervision -- Korea
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Banks and banking -- State supervision
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Economic policy
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Financial risk management
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| SUBJECT |
Korea -- Economic policy
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| Subject |
Korea
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| Form |
Electronic book
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| Author |
International Monetary Fund. Monetary and Capital Markets Department.
|
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World Bank. Finance and Private Sector Development.
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| ISBN |
1498309984 |
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9781498309981 |
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