Arab Today, arab today bill passage gives bok wider role in financial stability
Last Updated : GMT 08:08:15
Arab Today, arab today
Arab Today, arab today

Bill passage gives BOK wider role in financial stability

Arab Today, arab today

Arab Today, arab today Bill passage gives BOK wider role in financial stability

Seoul - Yonhap

South Korea\'s parliament on Wednesday approved a bill aimed at beefing up the Bank of Korea\'s (BOK) role in coping with financial instability, paving the way for the central bank to play a role in preventing another financial crisis. On the last day of the extra session, the National Assembly passed a revised bill governing the BOK in a 147 to 55 vote, allowing the central bank to keep financial stability as its policy priority, together with price stability. The amendment has been drifting for more than a year in the National Assembly amid sharply divided opinions among stakeholders. The regulator and local banks have been opposing the revision, claiming that the move will decentralize the watchdog\'s regulatory rights, thereby increasing burdens on financial firms due to potential frequent inspections. The passage of the bill will empower the central bank to cope with financial instability and conduct macro-prudential policy, paving the way for the BOK to tackle potential financial turmoil. The law regulating the BOK\'s activities was last revised in 1998, making price stability the central bank\'s top priority while its authority to supervise local banks was transferred to the Financial Supervisory Service (FSS), the financial regulator. But the global financial crisis and recent scandals over ailing savings banks, following the financial watchdog\'s regulatory mishap, have lent support to revising the BOK law so as to strengthen its role in stabilizing the financial system. The bill will legally guarantee the BOK\'s right to request the FSS, the financial watchdog, to jointly inspect financial firms. If the BOK requests a joint probe, the FSS is required to launch the investigation within one month, which will be listed by presidential decree. Local banks will also be required to put aside cash reserves for their bank bonds, a move that the lenders oppose because it will likely hurt their profitability. Currently, Korean banks are required to set aside a certain amount of customer deposits in cash at the central bank. But the bill did not reflect the BOK\'s wish to investigate local financial firms\' business practices on its own when lenders face an acute shortage of liquidity. Some experts said that a failure to secure authority to probe financial firms would limit the BOK\'s push to promote financial stability.  

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today bill passage gives bok wider role in financial stability Arab Today, arab today bill passage gives bok wider role in financial stability

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 21:27 2017 Wednesday ,22 February

Banks reject Saudi Telecom bid to resolve debt issue

GMT 15:19 2017 Wednesday ,22 February

Al Rajhi Bank delegation visits Aladdiyat Al Saudia

GMT 11:30 2017 Wednesday ,22 February

HSBC Mena profit falls on higher operating expenses

GMT 13:32 2017 Tuesday ,21 February

UAE Central Bank announces banking developments

GMT 05:09 2017 Tuesday ,21 February

Economy good, but homes in German cities

GMT 07:00 2017 Monday ,20 February

Bank of Singapore opens office in DIFC
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday