[서울=뉴스핌] Reporter Park Mi-ri = The Financial Supervisory Service has decided to strengthen the consolidated supervision of financial holdings by introducing a consolidated liquidity/leverage ratio in preparation for the prolonged Corona 19. It also strengthens the management of liquidity in won and foreign currencies of affiliated financial companies.
According to the ‘2021 work plan’ announced by the Financial Supervisory Service on the 16th, the basic direction of supervision this year is’to support the overcoming of the Corona 19 crisis and establish a trusted financial system.’ Four tasks were proposed: ▲Financial stability to overcome Corona 19 ▲Expansion of process foundation for sustainable growth ▲Expand inclusive finance to ease polarization ▲Financial innovation after Corona 19.
| [서울=뉴스핌] Reporter Park Mi-ri = 2021.02.16 [email protected] |
First of all, the Financial Supervisory Service plans to strengthen’connected supervision’ to strengthen risk management within financial holding companies in order to advance risk management of financial companies in preparation for the prolonged corona 19. It is a method of strengthening risk assessment and management analysis centered on bank holdings and introducing a consolidated liquidity/leverage ratio. It also decided to strengthen the management of liquidity in won and foreign currencies of affiliated financial companies such as securities and stilljeon.
System risk-related response systems will also be upgraded to cope with the trend toward high-risk assets due to ultra-low interest rates. It is expected to proactively detect potential risks such as funding by analyzing the capital flows of all financial sectors regularly, and to expand the scope of application of the new early warning model to securities. Financial product monitoring will be strengthened to eliminate the supervisory blind spot, and a financial group-centered monitoring system will be established.
The plan is to induce financial companies to establish a responsible management system. To this end, for tasks where consumer damage often occurs, measures to clarify the scope of responsibility of the executive in charge in advance and measures to improve internal control of financial holding companies are under review. Ahead of the enforcement of the Financial Consumer Protection Act in March, the business conduct supervision system will be reorganized, and violations of transaction order such as incomplete sales will be intensively checked.
It will also support regulatory overhaul to ensure fair competition between large platform companies (Big Tech) and financial companies. Representative examples include reviewing ways to allow non-face-to-face insurance recruitment using video calls and chatbots, or reviewing regulatory improvements such as allowing credit card terminal technology standards to software-type terminals.
We will also promote supervisory innovation to stably respond to changes in the post-corona financial environment. The Financial Supervisory Service is currently reviewing ways to revitalize equity investment and loans in start-ups such as banks and venture companies in order to induce expansion of the supply of venture capital in the financial sector. It promotes digital innovation by financial supervisors such as the introduction of Subtech and Legtech, and strengthens cooperation with overseas institutions related to climate and environmental risks.
An official from the Financial Supervisory Service said, “We will support the overcoming of the Corona 19 crisis, restore confidence in finance, which has been degraded by the private equity crisis, support win-win growth among economic actors, and promote sustainable financial development where financial innovation continues to occur.”
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