International Monetary FundWorld Bank2014-11-192014-11-192014-09https://hdl.handle.net/10986/20581This assessment of the current state of the implementation of the Basel core principles for effective banking supervision (BCP) in the Republic of Korea has been completed as part of a financial sector assessment program (FSAP) update undertaken by the international monetary fund (IMF) and the World Bank (WB) during 2013. It reflects the regulatory and supervisory framework in place as of the date of the completion of the assessment. An assessment of the effectiveness of banking supervision requires a review of the legal framework, and detailed examination of the policies and practices of the institution(s) responsible for banking regulation and supervision. In line with the BCP methodology, the assessment focused on the financial services commission - financial supervisory authority (FSC-FSS). This FSAP provides introduction; information and methodology used for assessment; institutional and macroeconomic setting and market structure - overview; preconditions for effective banking supervision; summary compliance with the Basel core principles; and detailed assessment.en-USCC BY 3.0 IGOACCESS TO BANKSACCOUNTABILITYACCOUNTINGACCOUNTING STANDARDSAFFILIATESARBITRAGEASSET CLASSASSET CLASSESASSET MANAGEMENTASSET MANAGEMENT COMPANIESASSET PRICEASSET QUALITYAUDITINGAUDITSAUTONOMYBALANCE SHEETBANK BORROWINGSBANK DEPOSITBANK EXAMINATIONBANK FAILUREBANK HOLDINGBANK HOLDING COMPANIESBANK OF KOREABANK OFFICERSBANKING INDUSTRYBANKING LAWSBANKING REGULATIONBANKING REGULATIONSBANKING SECTORBANKING SECTOR ASSETSBANKING SECTORSBANKING SUPERVISIONBANKING SYSTEMBANKING SYSTEMSBANKRUPTCYBANKSBORROWERBROKERSBUDGETARY PROCESSESBUDGETINGCAPITAL ADEQUACYCAPITAL BASECAPITAL FLOWCAPITAL FLOWSCAPITAL MARKETSCAPITAL PLANNINGCAPITAL REQUIREMENTSCAPITALIZATIONCASH FLOWCHECKSCOLLATERALCOLLECTIVE INVESTMENTCOMMERCIAL BANKINGCOMMERCIAL BANKSCOMMODITY PRICESCONFLICT OF INTERESTCONFLICTS OF INTERESTCONSOLIDATED SUPERVISIONCONSOLIDATIONCONSUMER PROTECTIONCORPORATE GOVERNANCECREDIBILITYCREDIT COOPERATIVESCREDIT LOSSCREDIT POLICIESCREDIT RISKCREDIT RISK MANAGEMENTCREDIT UNIONSCURRENCYCURRENT ACCOUNT SURPLUSCUSTODYDEBTDEBT REDUCTIONDEPOSITDEPOSIT INSURANCEDEPOSIT TAKING INSTITUTIONSDEPOSITORSDEPOSITORY INSTITUTIONSDEPOSITSDERIVATIVESDOMESTIC BANKSDUE DILIGENCEEMPLOYMENTEQUITY CAPITALEXCHANGE RATEEXPENDITUREEXPENDITURESEXTERNAL AUDITORSFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DATAFINANCIAL INFORMATIONFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL MARKETSFINANCIAL POLICIESFINANCIAL SECTOR ASSESSMENTFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL SYSTEMFINANCIAL SYSTEMSFINANCIAL TRANSACTIONSFISCAL DEFICITFISCAL POLICIESFISCAL POLICYFIXED INVESTMENTFOREIGN BANKSFOREIGN EXCHANGEFOREIGN FINANCIAL INSTITUTIONSFUTURESGLOBAL ECONOMYGROSS DOMESTIC PRODUCTHOLDINGHOLDING COMPANIESHUMAN RESOURCESINFLATIONINFORMATION SYSTEMINSURANCE COMPANIESINSURANCE CORPORATIONINTEREST RATEINTEREST RATE RISKINTERNAL AUDITINTERNAL CONTROLSINTERNATIONAL FINANCEINTERNATIONAL STANDARDSISSUANCELAWSLEGAL FRAMEWORKLEGAL PROTECTIONLEGAL PROVISIONSLEGISLATIONLIQUIDATIONLIQUIDITYLIQUIDITY RATIOSLIQUIDITY RISKLOANLOAN LOSS PROVISIONSMACROECONOMIC CONDITIONSMACROECONOMIC ENVIRONMENTMACROECONOMIC POLICIESMACROECONOMIC POLICYMANAGEMENT INFORMATION SYSTEMSMANDATESMARKET DISCIPLINEMARKET INDEXMARKET PARTICIPANTSMARKET RISKMARKET SHAREMARKET STRUCTUREMATURITYMATURITY MISMATCHMERCHANT BANKSMICRO CREDITMINIMUM CAPITAL REQUIREMENTSMONETARY FUNDMORAL HAZARDMORTGAGEMUTUAL SAVINGSMUTUAL SAVINGS BANKSNATURAL DISASTERNEGOTIABLE INSTRUMENTSNON-PERFORMING LOANSNONBANKSNPLOFFSITE MONITORINGOFFSITE SUPERVISIONOFFSITE SURVEILLANCEONSITE EXAMINATIONOPERATIONAL INDEPENDENCEOPERATIONAL RISKOWNERSHIP STRUCTUREPENALTIESPORTFOLIOPORTFOLIO FLOWSPORTFOLIO INFLOWSPORTFOLIOSPOST OFFICEPRICE STABILITYPRIVATE FINANCIAL INSTITUTIONSPRUDENTIAL REGULATIONSPRUDENTIAL REQUIREMENTSPRUDENTIAL STANDARDSPUBLIC FUNDSREGIONAL BANKSREGULATORY FRAMEWORKREGULATORY PRACTICESREPAYMENTREPAYMENT CAPACITYRESERVERESERVESRESOURCE ALLOCATIONRETURNRISK CAPITALRISK EXPOSURESRISK MANAGEMENTRISK MANAGEMENT SYSTEMSRISK PROFILESAVINGSSECURITIESSETTLEMENTSHAREHOLDERSHAREHOLDERSSHORT-TERM DEBTSMALL LOANSSPECIALIZED BANKSSTOCKSSUBSIDIARIESSUBSIDIARYSUPERVISION OF BANKSSUPERVISORY AGENCYSUPERVISORY AUTHORITYSUPERVISORY BOARDSUPERVISORY FRAMEWORKSUPERVISORY POWERSSYSTEMIC RISKTAXTERRORISMTIER 1 CAPITALTOTAL DEBTTRADINGTRANSACTIONTRANSFER RISKTRANSFER RISKSTRANSPARENCYVALUATIONVALUATIONSWRITE OFFS10.1596/20581