April 23, 2024
Finance
FSS chief urges tougher risk management of securities firms
[THE INVESTOR] South Korea’s top financial regulator on Dec. 2 called on local securities companies to thoroughly deal with risk factors.
“As of end-September, bonds owned by securities firms are worth 187 trillion won (US$160 billion), close to half of 392 trillion won in their total assets, and those are exposed to loss risks from rate hikes,” Zhin Woong-seob, governor of the Financial Supervisory Service, pointed out during a meeting with the CEOs of 15 brokerage firms.
With regard to their 23.3 trillion won of debt guarantees, he added, 15.6 trillion won, or 67 percent, is related to property and vulnerable to the cycle of the real estate market.
Zhin called for a “preemptive and intensive” risk management, with the swings and uncertainties in the financial market growing in the wake of the US presidential election and amid European banks’ troubles.
He also requested the securities industry to play a bigger role in supporting corporate direct financing, saying small and medium-sized enterprises in the nation raised 87 percent of funds through bank loans in 2015.
(theinvestor@heraldcorp.com)
“As of end-September, bonds owned by securities firms are worth 187 trillion won (US$160 billion), close to half of 392 trillion won in their total assets, and those are exposed to loss risks from rate hikes,” Zhin Woong-seob, governor of the Financial Supervisory Service, pointed out during a meeting with the CEOs of 15 brokerage firms.
With regard to their 23.3 trillion won of debt guarantees, he added, 15.6 trillion won, or 67 percent, is related to property and vulnerable to the cycle of the real estate market.
Zhin called for a “preemptive and intensive” risk management, with the swings and uncertainties in the financial market growing in the wake of the US presidential election and amid European banks’ troubles.
He also requested the securities industry to play a bigger role in supporting corporate direct financing, saying small and medium-sized enterprises in the nation raised 87 percent of funds through bank loans in 2015.
(theinvestor@heraldcorp.com)
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