South Korea: Financial institutions to draw up crisis recovery plans
Source: Asia Insurance Review | Jan 2017
Korean regulators are seeking to require financial companies, including insurers, to draft plans to arm themselves to cope with crises. The plans include measures to increase the capital base and reduce liabilities.
The Financial Services Commission (FSC), the Bank of Korea (BOK) and state-run Korea Deposit Insurance Corp (KDIC) will push for such preventive measures early this year, reported Korea Times.
Should companies fail to provide a sufficient self-recovery plan, the financial authorities will likely restrict their business. This could mean that there will be no more government bailouts of financial institutions using taxpayers’ money as were seen in the 1997-98 Asian financial crisis and the 2008-09 global financial crisis, sources said.