Featured Product

    FSC of Korea to Focus on Financial Innovation in 2020

    February 20, 2020

    FSC of Korea published its work plan that outlines the key policy tasks for the financial sector in 2020. The key tasks include redirecting capital flow toward small and medium enterprises (SMEs) and startups with innovative technologies and future growth potential. Another focus area of the policy work is bold reforms in financial regulations while fostering convergence between new technologies and finance, promoting inclusive finance, and establishing a reliable financial safety net to support comeback of failed businesses. FSC also designated nine additional financial solutions as innovative financial services to be added to its regulatory sandbox program, which already consists of 86 innovative financial services so far since the launching of the regulatory sandbox program on April 01, 2019.

    The key financial policy tasks for 2020 are:

    • Providing targeted support of financial and non-financial assistance in the amount of KRW 40 trillion to 1,000 innovative firms
    • Evaluating companies based on their technologies and future growth potential and support businesses with their competitiveness and credit evaluation using big data.
    • Improving financial regulatory system for a new era through the regulatory sandbox program.
    • Promoting the MyData business that helps collect an array of dispersed personal data for analysis and expansion of open banking and fintechs
    • Working on inclusive finance measures by establishing a debt restructuring system focusing on the needs of debtors to support and encourage their comeback from failed business attempts.
    • Allowing diverse types of assets to be used as collateral by pushing for a revision of the Act on Security over Movable Property, Claims, etc. It will also help set up a movable collateral registry which will help collect collaterals and nonperforming loans on behalf of financial companies.
    • Revamping indemnification provisions for financial industry workers to protect them from taking on a burden of excessive responsibilities if the loans were made through a reasonable evaluation process.
    • Providing support tailored to specific needs at different stages of business including startups and scale-ups; also, helping innovative firms grow into the future and help them with successful IPOs, make companies’ future growth potential an important component of IPO requirements.
    • Redirecting capital flows toward businesses from households and real estates, by introducing the new loan-to-deposit ratio that will encourage more corporate lending by financial companies.

     

    Related Links

    Keywords: Asia Pacific, Korea, Banking, Work Plan, Fintech, Big Data, SME, MyData, Regulatory Sandbox, FSC

    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BCBS Issues Climate Risk Principles while HKMA Expresses Its Support

    The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8286