Featured Product

    FSC Korea Announces Fintech Updates and COVID-19 Measures

    January 14, 2021

    FSC Korea introduced a new tech financing guideline, which outlines details about the specific target business sectors and relevant procedures of tech financing. The guideline specifies tech financing procedures for small and medium enterprises, banks, technical credit bureaus, and Korea Credit Information Services. The guideline aims to promote independence of tech credit evaluation by prohibiting inappropriate activities by banks and technical credit bureaus while suggesting fair professional standards. The guideline became applicable from January 2021. However, the standardized tech credit evaluation model will be made available in the second half of 2021 after the completion of system development. Until now, five tech credit bureaus and ten banks have provided tech credit evaluation service using their own evaluation models.

    In addition, Doh Kyu-sang, the Vice Chairman of FSC Korea, held the financial risk assessment meeting in January to review the progress of the COVID-19 financial support programs for small merchants and small and medium- size enterprises (SMEs). FSC Korea announced the availability of additional lending support for small merchants, including lower interest rates and guarantee fees for the second phase COVID-19 financial support program and the newly launched lending support of up to KRW 10 million for those hit by social gathering restrictions. From January 18, 2021, the second phase COVID-19 lending program for small merchants will be offered at an interest rate of maximum two percentage points lower than the previously offered levels. The banking sector agreed to lower interest rates for small merchant loans by one percentage point on December 29, 2020. In addition, KB Kookmin bank, Woori Bank, KEB Hana Bank, NH Bank, and Industrial Bank of Korea will offer an extra percentage point reduction in interest rates. 

    In yet another development, in December 2020, FSC Korea decided to grant preliminary MyData business licenses to twenty-one financial institutions, fintech firms, and electronic financial businesses, out of a total of thirty-five applicants. In January 2021, FSC Korea decided to grant preliminary MyData business licenses to seven more business entities: Viva Republica, Minwise Co, Coocon, Fintech Inc., Habit Factory, Standard Chartered Korea, and SK Planet. For Kakao Pay, the application review is still ongoing. FSC Korea plans to announce the final license approval results in late January. Aside from the approval process, the authorities are working on measures to strengthen consumer protection in MyData sector. The authorities plan to come up with a specific guideline in this regard in February 2021.

     

    Related Links

    Keywords: Asia Pacific, Korea, Banking, COVID-19, Fintech, Credit Evaluation, SME, MyData, Credit Risk, FSC

    Featured Experts
    Related Articles
    News

    EBA Launches Stress Tests for Banks, Issues Other Updates

    The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.

    January 31, 2023 WebPage Regulatory News
    News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News
    News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8700