2014年-IMF国际货币组织全球_Republic_of_Korea_Financial_System_Stability_Assessment_54页_1mb

Financial System Stability Assessment of the Republic of Korea (May 2014)

Core Content

This report is part of the Financial Sector Assessment Program (FSAP) conducted by the International Monetary Fund (IMF) and the World Bank in 2013, with the aim of assessing the stability of the Republic of Korea's financial system. It was prepared as background for the Article IV consultation and includes findings and recommendations for improving financial stability and resilience.

Main Points

Macroeconomic Outlook

• The Korean economy showed a modest recovery in 2013, with GDP growth expected to rise to 2.8 percent, and further to 3.7 percent in 2014.
• Inflation declined to 0.7 percent in October 2013, well below the target range of $2^{1/2} - 3^{1/2}$ percent.
• The current account surplus widened, putting upward pressure on the exchange rate.
• Key risks include external shocks such as a sharp slowdown in Korea's main trading partners or severe global financial market stress.

Financial System Resilience

• The banking system is resilient to extreme growth shocks or prolonged economic stagnation.
• Banks maintain capital adequacy ratios (CAR) at or above 10 percent even under severe stress scenarios.
• The foreign currency liquidity position of banks is strong, with only a very severe scenario posing a small liquidity shortage.
• Nonbank depository institutions (NBDIs) are more vulnerable, particularly to credit risk, and should be subject to a regulatory framework consistent with that for banks.

Macroprudential Policy

• Korea has been effective in applying macroprudential policies, but lacks a formal macroprudential council.
• A macroprudential council is recommended to enhance transparency, accountability, and independence from political influence.
• The role of the Bank of Korea (BOK) in financial stability should be clarified and strengthened.
• Macroprudential policy should be separated from crisis management functions.

Financial Sector Supervision

• The Financial Services Commission (FSC) and Financial Supervisory Service (FSS) are key institutions in financial oversight.
• There are concerns about the independence of these bodies from political influence and overlapping responsibilities.
• Recommendations include enhancing the independence of FSC and FSS, increasing transparency in decision-making, and improving the enforcement mechanisms.

Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT)

• Korea has taken various initiatives to strengthen AML/CFT measures.
• However, there are shortcomings in the risk-based approach, slow legal framework updates, and limited supervision of certain deposit-taking institutions.
• A risk-based approach and expanded supervisory activities to all deposit-taking institutions and non-financial businesses are recommended.

Crisis Management and Resolution

• A dedicated apex committee for crisis preparedness and management is recommended.
• Periodic crisis simulation exercises should be undertaken.
• The deposit insurance fund should be replenished, and the Korea Deposit Insurance Corporation (KDIC) should have adequate back-up funding.
• The resolution framework should be aligned with international best practices, especially for financial conglomerates and systemically important financial institutions (SIFIs).

Financial Market Infrastructures (FMIs)

• Korea has a well-developed payment, clearing, and settlement infrastructure.
• There is room for improvement in compliance with international standards.
• Enhanced cooperation between the BOK and FSC is recommended for FMI oversight.
• A Memorandum of Understanding (MOU) between the BOK and FSC should be established to improve coordination.
• The BOK should be empowered with more enforcement tools.

Key Recommendations

• Establish a dedicated macroprudential council with a stronger role for the BOK, the ability to recommend regulatory actions, and transparency in policy deliberations (medium-term).
• Strengthen the independence of the FSC and FSS and increase transparency in decision-making (short to medium-term).
• Enhance enforcement effectiveness by broadening penalties and increasing fines (medium-term).
• Improve coordination among agencies involved in stress testing (short-term).
• Validate banks' stress testing exercises and disclose results to the public (short-term).
• Empower supervisors to set capital ratios above Basel II minimum, implement all principles of Pillar-2, and extend capital calculation to group holding companies (short-term).
• Apply a regulatory framework consistent with banks to all NBDIs, with stricter supervision for larger entities (short-term).
• Implement a risk-based approach to AML/CFT supervision and expand activities to all deposit-taking institutions and designated non-financial businesses (short-term).
• Ensure comprehensive audit oversight and set minimum standards for external auditors (medium-term).
• Enhance risk-sensitivity of supervision through more flexible and frequent examinations (medium-term).
• Establish a dedicated apex committee for crisis preparedness and management (short-term).
• Replenish the deposit insurance fund and ensure KDIC back-up funding (short-term).
• Address moral hazard risks by improving banks' risk management and ensuring government support is not open-ended (medium-term).
• Ensure BOK's crisis management contingency plan adequately covers emergency liquidity assistance (ELA) decisions (short-term).
• Reform the credit risk and management framework for the securities market and increase the number of KRX staff managing companywide and CCP-related matters (short-term).

Conclusion

The Korean financial system has shown significant improvement since the 2008 crisis, with stronger capitalization, liquidity, and regulatory frameworks. However, vulnerabilities remain, particularly in the nonbank sector, and there is a need for enhanced macroprudential coordination, improved supervision, and more robust crisis management frameworks to ensure long-term financial stability.