Republic of Korea: Financial System Stability Assessment and Press Release for the Republic of Korea
IMF Staff Country Reports, April 20, 2020
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- Republic of Korea: Financial System Stability Assessment and Press Release for the Republic of Korea
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Bibliographic details
- Published: April 20, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513541433.002
Executive summary and scope
- Presents Financial System Stability Assessment (FSSA) with the Republic of Korea.
- Publication details:
- Pages: 65
- Volume: 2020
- Issue: 120
- Series: Country Report No. 2020/120
- DOI: https://doi.org/10.5089/9781513541433.002
- Stock No: 1KOREA2020001
- ISBN: 9781513541433
- ISSN: 1934-7685
Main findings on the financial system
- The Korean authorities have continued efforts at upgrading the prudential, legal, and supervisory framework for the financial sector.
- Authorities are keeping up with international standards and practices in other G20 jurisdictions.
- The system has been strengthened with micro and macroprudential measures against vulnerabilities.
- Crisis management framework has been strengthened.
- Prudential and legal framework upgrades are underway.
Systemic risk monitoring and stress testing
- The FSSA recommends moving toward a more forward-looking monitoring and systemic risk identification mechanism.
- The reliability of various stress tests could be augmented with:
- advanced methods,
- system-wide monitoring,
- testing the overall leverage related to residential properties,
- testing households’ resilience to adverse shocks,
- testing sovereign contingent liabilities.
Risks in securities markets and asset management
- Stronger focus is required on systemic risks emanating from securities market activities that can amplify contagion.
- Specific vulnerabilities noted:
- sudden redemption pressures in funds,
- liquidity pressures in the funds and asset management industry.
Thematic coverage and keywords
- Subject areas: Asset and liability management, Banking, Commercial banks, Financial institutions, Financial Sector Assessment Program, Financial sector policy and analysis, Financial sector stability, Housing prices, Insurance, Liquidity, Loans.
- Keywords: Asia and Pacific, bank, central bank, Commercial banks, CR, exchange rate, Financial sector stability, Global, holding company, Insurance, ISCR, Korea's financial system, Liquidity, Loans, onshore financial markets.
Republic of Korea: Financial System Stability Assessment and Press Release for the Republic of Korea
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- 1korea2020001