FSC of Korea to Focus on Financial Innovation in 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
Previous Article
IAIS Statement on Monitoring Period of Insurance Capital StandardRelated Articles
EC Issues Regulation on Adjustments to K-Factor Coefficients Under IFR
The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).
OSFI Issues Results of Pilot on Climate Risk Scenario Analysis
The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.
ECB Issues Opinions on Green Bonds Standard and CRR Proposals
The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.
ESRB Explores Policy Response to Risks Arising from Digitalization
The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.
EU Authorities Address COVID-19 Reporting, MCD, and PSD2 Issues
The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.
FI Publishes Multiple Regulatory and Reporting Updates
The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.
BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
EBA Issues Guide on Bank Resolvability, Consults on Transferability
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
MFSA Publishes CRD5 Updates and Supervisory Priorities for 2022
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.
