April 24, 2024
Economy
FSC to promote mega-sized IBs
[THE INVESTOR] South Korea will alter regulations on the capital market in a bid to foster mega-sized investment banks, the financial regulator said on Dec. 29.
The Financial Services Commission notified the public of the revision plan in which local brokerages with a huge capital base will be allowed to broaden their businesses beyond brokerage services.
IBs with 4 trillion won (US$3.30 billion) or more in equity capital will be eligible for short-term corporate lending, such as the issuance of commercial papers.
Securities firms with equity capital of 8 trillion won or more will be able to launch investment management accounts.
Currently, three local related firms -- Mirae Asset Daewoo Securities, NH Investment & Securities and Korea Investment & Securities -- have equity capital of 4 trillion won or more.
Samsung Securities will join the club once its ongoing paid-in capital increase process is completed.
If KB Investment & Securities merges with Hyundai Securities early next year as scheduled, its equity capital will come close to 4 trillion won as well.
The FSC plans to put the new rules into effect in the second half of next year.
(theinvestor@heraldcorp.com)
The Financial Services Commission notified the public of the revision plan in which local brokerages with a huge capital base will be allowed to broaden their businesses beyond brokerage services.
IBs with 4 trillion won (US$3.30 billion) or more in equity capital will be eligible for short-term corporate lending, such as the issuance of commercial papers.
Securities firms with equity capital of 8 trillion won or more will be able to launch investment management accounts.
Currently, three local related firms -- Mirae Asset Daewoo Securities, NH Investment & Securities and Korea Investment & Securities -- have equity capital of 4 trillion won or more.
Samsung Securities will join the club once its ongoing paid-in capital increase process is completed.
If KB Investment & Securities merges with Hyundai Securities early next year as scheduled, its equity capital will come close to 4 trillion won as well.
The FSC plans to put the new rules into effect in the second half of next year.
(theinvestor@heraldcorp.com)
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