FSC Korea announced ways to improve the credit recovery support system. Among other measures, up to one-year loan deferment program being offered to those impacted by the pandemic will be extended to include those who have been laid off and/or have experienced business closure. The updated measures are expected to go into effect in November this year. FSC and FSS also signed a Memorandum of Understanding with BOT on comprehensive cooperation in the areas related to the financial sector and innovation in financial services. The Memorandum provides a basis for mutual cooperation on experience sharing, technical assistance, and exchange of information regarding functions such as supervisory model, operational mechanism, and regulations on innovative financial services.
FSC Korea also announced that financial groups are now required to disclose information on specific areas and 25 sub-categories such as general management status, corporate governance structure, internal control, risk management, capital adequacy requirements, internal transaction, and capital or credit extension to major shareholders. Pursuant to the best practice guidelines on the supervision of financial conglomerates, financial groups will begin to disclose information through a group-wide integrated disclosure format starting from the end of September this year. Quarterly disclosures are due within three months prior to the end of every quarter and annual disclosures are due within five months and fifteen days from the end of every fourth quarter. With the availability of information on group-wide risk factors and risk management status in an easily understandable format, the newly introduced integrated disclosures by financial groups will provide useful information to consumers and investors while boosting risk management capabilities of financial companies through market-based approaches. Meanwhile, the government will continue to work for the enactment of the legislation on the supervision of financial conglomerates.
- Press Release on Credit Recovery Support System (PDF)
- Press Release on MoU with BOT (PDF)
- Press Release on Integrated Disclosures (PDF)
Keywords: Asia Pacific, Korea, Banking, COVID-19, Financial Conglomerates, Credit Risk, Loan Moratorium, Disclosures, BOT, FSC
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous ArticleDNB Consults on Treatment of Savings Mortgages Under Solvency II
PRA published a statement that explains when to expect further information on the PRA approach to transposing the Capital Requirements Directive (CRD5), including its approach to revisions to the definition of capital for Pillar 2A.
SRB published the work program for 2021-2023, setting out a roadmap to further operationalize the Single Resolution Fund and to achieve robust resolvability of banks under its remit over the next three years.
EIOPA is consulting on the relevant ratios to be mandatorily disclosed by insurers and reinsurers falling within the scope of the Non-Financial Reporting Directive as well as on the methodologies to build these ratios.
HM Treasury extended the consultation period on Phase II of the Future Regulatory Framework (FRF) Review, from January 19, 2021 to February 19, 2021.
The Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS, endorsed a coordinated approach to mitigate COVID-19 risks to the global banking system.
US Agencies (FDIC, FED, and OCC) issued a joint statement encouraging banks to cease entering into new contracts that use USD LIBOR as a reference rate as soon as practicable and in any event by December 31, 2021, to facilitate an orderly LIBOR transition.
ECB finalized guidance on the way it expects banks to prudently manage and transparently disclose climate and other environmental risks under the current prudential rules.
BCBS published a technical amendment to the capital treatment of securitizations of non-performing loans by banks.
PRA published the policy statement PS23/20 on the calculation of stressed value at risk (sVAR) and risks not in value at risk (RNIV) under the market risk framework.
BoE announced that the Data and Statistics Division is planning to move collection of statistical data to the BoE Electronic Data Submission (BEEDS) portal.