Republic of Korea Financial Sector Assessment Program Technical Note : Crisis Preparedness and Crisis Management Framework
Korea experienced a financial crisis in the late 1990s, which it overcame successfully. The rich experiences gained in handling past crises have helped in the establishment of a broad crisis management framework in Korea. The successful management...
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| Format: | Financial Sector Assessment Program (FSAP) |
| Language: | English en_US |
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Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2014/12/23790263/korea-financial-sector-assessment-program-crisis-preparedness-crisis-management-framework-technical-note http://hdl.handle.net/10986/21420 |
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okr-10986-21420 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCEPTABLE COLLATERAL ACCOUNTING ASSET MANAGEMENT ASSET MANAGEMENT COMPANIES ASSET QUALITY ASSET STRIPPING BALANCE SHEET BANK BRANCHES BANK DEPOSIT BANK DEPOSITS BANK HOLDING BANKING CRISIS BANKING INSTITUTIONS BANKING SECTOR BANKING SECTOR ASSETS BANKING SECTORS BANKING SYSTEM BANKRUPTCY BANKRUPTCY DECLARATION BILLS OF EXCHANGE BOND BOND MARKET BOND MARKETS BONDS BROKERS BUSINESS ACCOUNTING CAPITAL MARKET CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS CERTIFICATES OF DEPOSITS COLLATERAL COLLECTIVE INVESTMENT COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL PAPERS CONTINGENCY PLANNING CORRECTIVE ACTION CORRECTIVE ACTIONS CREDIBILITY CREDIT CARD CREDIT COOPERATIVES CREDIT MARKET CREDIT POLICIES CREDIT UNIONS CREDITORS CREDITS DEBT ACCUMULATION DEBT MATURITY DEBT RESTRUCTURING DEPENDENT DEPOSIT DEPOSIT INSURANCE DEPOSIT INSURANCE AGENCIES DEPOSIT INSURANCE AGENCY DEPOSIT INSURANCE FUND DEPOSIT INSURANCE SYSTEM DEPOSIT INSURANCE SYSTEMS DEPOSIT INSURERS DEPOSIT PROTECTION DEPOSITOR DEPOSITORS DEPOSITS DEVELOPMENT BANK DISBURSEMENT DISBURSEMENT OF FUNDS DISSOLUTION DISTRESSED BANK DUE DILIGENCE ELIGIBLE DEPOSITORS EMERGENCY LIQUIDITY SUPPORT ESTATE EXTERNAL DEBT EXTERNAL DEBTS FEDERAL DEPOSIT INSURANCE FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INFORMATION FINANCIAL INSTABILITY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL POSITION FINANCIAL SECTOR REGULATION FINANCIAL SERVICES FINANCIAL SITUATION FINANCIAL STABILITY FINANCIAL STRUCTURE FINANCIAL SUPPORT FINANCIAL SYSTEM FINANCIAL SYSTEM STABILITY FINANCIAL TRANSACTION FISCAL POLICIES FOREIGN BANK FOREIGN COMPANIES FOREIGN CURRENCY FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FOREIGN FINANCIAL INSTITUTIONS FRAMEWORK FOR SECURITIES FUTURES GOVERNANCE STRUCTURE GOVERNMENT BONDS GROSS DOMESTIC PRODUCT HOLDING COMPANIES HOLDING COMPANY HOUSEHOLD DEBT INDIVIDUAL BANK INFORMATION SYSTEM INFORMATION TECHNOLOGY INSOLVENT INSOLVENT BANK INSOLVENT BANKS INSTITUTIONAL FRAMEWORK INSURANCE COMPANIES INSURANCE CORPORATION INSURANCE POLICIES INSURANCE PREMIUM INSURANCE PREMIUMS INTEREST PAYMENTS INTEREST RATE INTERNATIONAL SETTLEMENTS INVESTOR PROTECTION ISSUANCE JURISDICTION JURISDICTIONS LEGAL FRAMEWORK LEGAL POWERS LENDER LENDER OF LAST RESORT LEVIES LIABILITY LIFE INSURANCE LINE OF CREDIT LIQUIDATION LIQUIDITY LIQUIDITY RATIO LIQUIDITY SUPPORT LOCAL CURRENCY LOCAL GOVERNMENT MANDATE MANDATES MARKET CONFIDENCE MARKET DISCIPLINE MARKET INFRASTRUCTURES MARKET LIQUIDITY MARKET PLAYERS MARKET SHARE MARKET SHARES MERGER MERGERS MICRO FINANCE MICRO FINANCE SECTORS MINIMUM CAPITAL RATIO MONETARY FUND MONETARY POLICY MONEY MARKET MONEY MARKETS MORAL HAZARD MORTGAGE LOANS MUTUAL SAVINGS NON-PERFORMING LOAN NON-PERFORMING LOANS NPL OPEN MARKET OVERSIGHT OF BANKS PAYMENT SYSTEMS POLICY RESPONSE POLICY RESPONSES POSTAL SAVINGS PREFERENTIAL PAYMENTS PRICE STABILITY PRIVATE CAPITAL PROMISSORY NOTES PUBLIC FUNDS RECAPITALIZATION REPAYMENT REPOS RESERVE RESERVE REQUIREMENTS RESERVES RESIDENTIAL MORTGAGE RESTRUCTURING PROCESS RETURN RISK FACTORS RISK MANAGEMENT RISK PROFILE SAFETY NET SALE OF SECURITIES SAVINGS BANK SAVINGS BANKS SECURITIES SECURITIES HOLDING SECURITIES INVESTOR PROTECTION SECURITIES MARKETS SETTLEMENT SETTLEMENT SYSTEM SHAREHOLDER SHAREHOLDER EQUITY SHAREHOLDERS SOLVENCY STOCK MARKET STOCKS SUPERVISION OF BANKS SUPERVISORY AGENCIES SUPERVISORY AUTHORITIES SUPERVISORY AUTHORITY SUPERVISORY POLICIES SUPPORT TO BANKS SWAP SYSTEMIC STABILITY TRANSACTION TRANSPARENCY UNSECURED CREDITORS VALUATION WITHDRAWAL WITHDRAWAL OF FUNDS WORKOUT |
| spellingShingle |
ACCEPTABLE COLLATERAL ACCOUNTING ASSET MANAGEMENT ASSET MANAGEMENT COMPANIES ASSET QUALITY ASSET STRIPPING BALANCE SHEET BANK BRANCHES BANK DEPOSIT BANK DEPOSITS BANK HOLDING BANKING CRISIS BANKING INSTITUTIONS BANKING SECTOR BANKING SECTOR ASSETS BANKING SECTORS BANKING SYSTEM BANKRUPTCY BANKRUPTCY DECLARATION BILLS OF EXCHANGE BOND BOND MARKET BOND MARKETS BONDS BROKERS BUSINESS ACCOUNTING CAPITAL MARKET CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS CERTIFICATES OF DEPOSITS COLLATERAL COLLECTIVE INVESTMENT COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL PAPERS CONTINGENCY PLANNING CORRECTIVE ACTION CORRECTIVE ACTIONS CREDIBILITY CREDIT CARD CREDIT COOPERATIVES CREDIT MARKET CREDIT POLICIES CREDIT UNIONS CREDITORS CREDITS DEBT ACCUMULATION DEBT MATURITY DEBT RESTRUCTURING DEPENDENT DEPOSIT DEPOSIT INSURANCE DEPOSIT INSURANCE AGENCIES DEPOSIT INSURANCE AGENCY DEPOSIT INSURANCE FUND DEPOSIT INSURANCE SYSTEM DEPOSIT INSURANCE SYSTEMS DEPOSIT INSURERS DEPOSIT PROTECTION DEPOSITOR DEPOSITORS DEPOSITS DEVELOPMENT BANK DISBURSEMENT DISBURSEMENT OF FUNDS DISSOLUTION DISTRESSED BANK DUE DILIGENCE ELIGIBLE DEPOSITORS EMERGENCY LIQUIDITY SUPPORT ESTATE EXTERNAL DEBT EXTERNAL DEBTS FEDERAL DEPOSIT INSURANCE FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INFORMATION FINANCIAL INSTABILITY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL POSITION FINANCIAL SECTOR REGULATION FINANCIAL SERVICES FINANCIAL SITUATION FINANCIAL STABILITY FINANCIAL STRUCTURE FINANCIAL SUPPORT FINANCIAL SYSTEM FINANCIAL SYSTEM STABILITY FINANCIAL TRANSACTION FISCAL POLICIES FOREIGN BANK FOREIGN COMPANIES FOREIGN CURRENCY FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FOREIGN FINANCIAL INSTITUTIONS FRAMEWORK FOR SECURITIES FUTURES GOVERNANCE STRUCTURE GOVERNMENT BONDS GROSS DOMESTIC PRODUCT HOLDING COMPANIES HOLDING COMPANY HOUSEHOLD DEBT INDIVIDUAL BANK INFORMATION SYSTEM INFORMATION TECHNOLOGY INSOLVENT INSOLVENT BANK INSOLVENT BANKS INSTITUTIONAL FRAMEWORK INSURANCE COMPANIES INSURANCE CORPORATION INSURANCE POLICIES INSURANCE PREMIUM INSURANCE PREMIUMS INTEREST PAYMENTS INTEREST RATE INTERNATIONAL SETTLEMENTS INVESTOR PROTECTION ISSUANCE JURISDICTION JURISDICTIONS LEGAL FRAMEWORK LEGAL POWERS LENDER LENDER OF LAST RESORT LEVIES LIABILITY LIFE INSURANCE LINE OF CREDIT LIQUIDATION LIQUIDITY LIQUIDITY RATIO LIQUIDITY SUPPORT LOCAL CURRENCY LOCAL GOVERNMENT MANDATE MANDATES MARKET CONFIDENCE MARKET DISCIPLINE MARKET INFRASTRUCTURES MARKET LIQUIDITY MARKET PLAYERS MARKET SHARE MARKET SHARES MERGER MERGERS MICRO FINANCE MICRO FINANCE SECTORS MINIMUM CAPITAL RATIO MONETARY FUND MONETARY POLICY MONEY MARKET MONEY MARKETS MORAL HAZARD MORTGAGE LOANS MUTUAL SAVINGS NON-PERFORMING LOAN NON-PERFORMING LOANS NPL OPEN MARKET OVERSIGHT OF BANKS PAYMENT SYSTEMS POLICY RESPONSE POLICY RESPONSES POSTAL SAVINGS PREFERENTIAL PAYMENTS PRICE STABILITY PRIVATE CAPITAL PROMISSORY NOTES PUBLIC FUNDS RECAPITALIZATION REPAYMENT REPOS RESERVE RESERVE REQUIREMENTS RESERVES RESIDENTIAL MORTGAGE RESTRUCTURING PROCESS RETURN RISK FACTORS RISK MANAGEMENT RISK PROFILE SAFETY NET SALE OF SECURITIES SAVINGS BANK SAVINGS BANKS SECURITIES SECURITIES HOLDING SECURITIES INVESTOR PROTECTION SECURITIES MARKETS SETTLEMENT SETTLEMENT SYSTEM SHAREHOLDER SHAREHOLDER EQUITY SHAREHOLDERS SOLVENCY STOCK MARKET STOCKS SUPERVISION OF BANKS SUPERVISORY AGENCIES SUPERVISORY AUTHORITIES SUPERVISORY AUTHORITY SUPERVISORY POLICIES SUPPORT TO BANKS SWAP SYSTEMIC STABILITY TRANSACTION TRANSPARENCY UNSECURED CREDITORS VALUATION WITHDRAWAL WITHDRAWAL OF FUNDS WORKOUT International Monetary Fund World Bank Republic of Korea Financial Sector Assessment Program Technical Note : Crisis Preparedness and Crisis Management Framework |
| geographic_facet |
East Asia and Pacific Korea, Republic of |
| description |
Korea experienced a financial crisis in
the late 1990s, which it overcame successfully. The rich
experiences gained in handling past crises have helped in
the establishment of a broad crisis management framework in
Korea. The successful management of the 1997 financial
crisis is reported to have been guided by the following
principles: (i) bold and decisive measures are required to
regain market confidence, rather than incremental ones; (ii)
though Government will take the lead in crisis management
initiatives, private capital should be encouraged to fully
participate in the process; (iii) bank recapitalization and
creation of a bad bank are not mutually exclusive options;
the crisis management measures should be politically
acceptable and have built-in exit strategies with clear
time-frames; (iv) moral hazard should be minimized; and (v)
all forms of financial protectionism must be rejected. Korea
responded to the 2008 global financial crisis with certain
policy measures that helped the Korean financial and real
sectors to weather the immediate effects of the global
crisis. These included policy and financial support to
stabilize the money, securities, and bond markets, to extend
financial support to corporate and financial entities, and
to support small and medium enterprise (SME) and micro
finance sectors. The authorities introduced a series of
measures to contain the stress in Mutual Savings Banks
(MSBs) during 2011 and 2012 and turned them around. The
stress in MSBs was largely due to an extensive industry-wide
exposure to troubled real estate project financing as well
as shareholder and management misconduct.4 Faced with
sector-wide stress and declining depositor confidence the
financial sector regulatory agencies jointly announced new
mitigating measures for the MSB sector. |
| format |
Economic & Sector Work :: Financial Sector Assessment Program (FSAP) |
| author |
International Monetary Fund World Bank |
| author_facet |
International Monetary Fund World Bank |
| author_sort |
International Monetary Fund |
| title |
Republic of Korea Financial Sector Assessment Program Technical Note : Crisis Preparedness and Crisis Management Framework |
| title_short |
Republic of Korea Financial Sector Assessment Program Technical Note : Crisis Preparedness and Crisis Management Framework |
| title_full |
Republic of Korea Financial Sector Assessment Program Technical Note : Crisis Preparedness and Crisis Management Framework |
| title_fullStr |
Republic of Korea Financial Sector Assessment Program Technical Note : Crisis Preparedness and Crisis Management Framework |
| title_full_unstemmed |
Republic of Korea Financial Sector Assessment Program Technical Note : Crisis Preparedness and Crisis Management Framework |
| title_sort |
republic of korea financial sector assessment program technical note : crisis preparedness and crisis management framework |
| publisher |
Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2014/12/23790263/korea-financial-sector-assessment-program-crisis-preparedness-crisis-management-framework-technical-note http://hdl.handle.net/10986/21420 |
| _version_ |
1764448210966806528 |
| spelling |
okr-10986-214202021-04-23T14:04:02Z Republic of Korea Financial Sector Assessment Program Technical Note : Crisis Preparedness and Crisis Management Framework International Monetary Fund World Bank ACCEPTABLE COLLATERAL ACCOUNTING ASSET MANAGEMENT ASSET MANAGEMENT COMPANIES ASSET QUALITY ASSET STRIPPING BALANCE SHEET BANK BRANCHES BANK DEPOSIT BANK DEPOSITS BANK HOLDING BANKING CRISIS BANKING INSTITUTIONS BANKING SECTOR BANKING SECTOR ASSETS BANKING SECTORS BANKING SYSTEM BANKRUPTCY BANKRUPTCY DECLARATION BILLS OF EXCHANGE BOND BOND MARKET BOND MARKETS BONDS BROKERS BUSINESS ACCOUNTING CAPITAL MARKET CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS CERTIFICATES OF DEPOSITS COLLATERAL COLLECTIVE INVESTMENT COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL PAPERS CONTINGENCY PLANNING CORRECTIVE ACTION CORRECTIVE ACTIONS CREDIBILITY CREDIT CARD CREDIT COOPERATIVES CREDIT MARKET CREDIT POLICIES CREDIT UNIONS CREDITORS CREDITS DEBT ACCUMULATION DEBT MATURITY DEBT RESTRUCTURING DEPENDENT DEPOSIT DEPOSIT INSURANCE DEPOSIT INSURANCE AGENCIES DEPOSIT INSURANCE AGENCY DEPOSIT INSURANCE FUND DEPOSIT INSURANCE SYSTEM DEPOSIT INSURANCE SYSTEMS DEPOSIT INSURERS DEPOSIT PROTECTION DEPOSITOR DEPOSITORS DEPOSITS DEVELOPMENT BANK DISBURSEMENT DISBURSEMENT OF FUNDS DISSOLUTION DISTRESSED BANK DUE DILIGENCE ELIGIBLE DEPOSITORS EMERGENCY LIQUIDITY SUPPORT ESTATE EXTERNAL DEBT EXTERNAL DEBTS FEDERAL DEPOSIT INSURANCE FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INFORMATION FINANCIAL INSTABILITY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL POSITION FINANCIAL SECTOR REGULATION FINANCIAL SERVICES FINANCIAL SITUATION FINANCIAL STABILITY FINANCIAL STRUCTURE FINANCIAL SUPPORT FINANCIAL SYSTEM FINANCIAL SYSTEM STABILITY FINANCIAL TRANSACTION FISCAL POLICIES FOREIGN BANK FOREIGN COMPANIES FOREIGN CURRENCY FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FOREIGN FINANCIAL INSTITUTIONS FRAMEWORK FOR SECURITIES FUTURES GOVERNANCE STRUCTURE GOVERNMENT BONDS GROSS DOMESTIC PRODUCT HOLDING COMPANIES HOLDING COMPANY HOUSEHOLD DEBT INDIVIDUAL BANK INFORMATION SYSTEM INFORMATION TECHNOLOGY INSOLVENT INSOLVENT BANK INSOLVENT BANKS INSTITUTIONAL FRAMEWORK INSURANCE COMPANIES INSURANCE CORPORATION INSURANCE POLICIES INSURANCE PREMIUM INSURANCE PREMIUMS INTEREST PAYMENTS INTEREST RATE INTERNATIONAL SETTLEMENTS INVESTOR PROTECTION ISSUANCE JURISDICTION JURISDICTIONS LEGAL FRAMEWORK LEGAL POWERS LENDER LENDER OF LAST RESORT LEVIES LIABILITY LIFE INSURANCE LINE OF CREDIT LIQUIDATION LIQUIDITY LIQUIDITY RATIO LIQUIDITY SUPPORT LOCAL CURRENCY LOCAL GOVERNMENT MANDATE MANDATES MARKET CONFIDENCE MARKET DISCIPLINE MARKET INFRASTRUCTURES MARKET LIQUIDITY MARKET PLAYERS MARKET SHARE MARKET SHARES MERGER MERGERS MICRO FINANCE MICRO FINANCE SECTORS MINIMUM CAPITAL RATIO MONETARY FUND MONETARY POLICY MONEY MARKET MONEY MARKETS MORAL HAZARD MORTGAGE LOANS MUTUAL SAVINGS NON-PERFORMING LOAN NON-PERFORMING LOANS NPL OPEN MARKET OVERSIGHT OF BANKS PAYMENT SYSTEMS POLICY RESPONSE POLICY RESPONSES POSTAL SAVINGS PREFERENTIAL PAYMENTS PRICE STABILITY PRIVATE CAPITAL PROMISSORY NOTES PUBLIC FUNDS RECAPITALIZATION REPAYMENT REPOS RESERVE RESERVE REQUIREMENTS RESERVES RESIDENTIAL MORTGAGE RESTRUCTURING PROCESS RETURN RISK FACTORS RISK MANAGEMENT RISK PROFILE SAFETY NET SALE OF SECURITIES SAVINGS BANK SAVINGS BANKS SECURITIES SECURITIES HOLDING SECURITIES INVESTOR PROTECTION SECURITIES MARKETS SETTLEMENT SETTLEMENT SYSTEM SHAREHOLDER SHAREHOLDER EQUITY SHAREHOLDERS SOLVENCY STOCK MARKET STOCKS SUPERVISION OF BANKS SUPERVISORY AGENCIES SUPERVISORY AUTHORITIES SUPERVISORY AUTHORITY SUPERVISORY POLICIES SUPPORT TO BANKS SWAP SYSTEMIC STABILITY TRANSACTION TRANSPARENCY UNSECURED CREDITORS VALUATION WITHDRAWAL WITHDRAWAL OF FUNDS WORKOUT Korea experienced a financial crisis in the late 1990s, which it overcame successfully. The rich experiences gained in handling past crises have helped in the establishment of a broad crisis management framework in Korea. The successful management of the 1997 financial crisis is reported to have been guided by the following principles: (i) bold and decisive measures are required to regain market confidence, rather than incremental ones; (ii) though Government will take the lead in crisis management initiatives, private capital should be encouraged to fully participate in the process; (iii) bank recapitalization and creation of a bad bank are not mutually exclusive options; the crisis management measures should be politically acceptable and have built-in exit strategies with clear time-frames; (iv) moral hazard should be minimized; and (v) all forms of financial protectionism must be rejected. Korea responded to the 2008 global financial crisis with certain policy measures that helped the Korean financial and real sectors to weather the immediate effects of the global crisis. These included policy and financial support to stabilize the money, securities, and bond markets, to extend financial support to corporate and financial entities, and to support small and medium enterprise (SME) and micro finance sectors. The authorities introduced a series of measures to contain the stress in Mutual Savings Banks (MSBs) during 2011 and 2012 and turned them around. The stress in MSBs was largely due to an extensive industry-wide exposure to troubled real estate project financing as well as shareholder and management misconduct.4 Faced with sector-wide stress and declining depositor confidence the financial sector regulatory agencies jointly announced new mitigating measures for the MSB sector. 2015-02-09T21:04:23Z 2015-02-09T21:04:23Z 2014-12 http://documents.worldbank.org/curated/en/2014/12/23790263/korea-financial-sector-assessment-program-crisis-preparedness-crisis-management-framework-technical-note http://hdl.handle.net/10986/21420 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ Washington, DC Economic & Sector Work :: Financial Sector Assessment Program (FSAP) Economic & Sector Work East Asia and Pacific Korea, Republic of |