The total amount of public funds used for restructuring the financial system is estimated to be 156.2 trillion won and 42 trillion won out of that has been recovered as of March 2002. The amount of public funds that is expected to be recovered is approximately 86 trillion won and the estimated loss is 69 trillion won, in present values, as of March 2002.
The repayment of the loss of public funds has to be shared by the financial companies, non-financial companies, users of financial companies, and other tax payers, who directly and indirectly benefited from the stabilized financial markets, normalized financial industry, lowered interest rates and the subsequent economic recovery. The financial sector needs to be responsible for 20 trillion won of the 69 trillion won total loss, considering its ability to pay, and the government needs to be responsible for the remainder.
In order to facilitate the repayment of the financial sector, the government needs to adopt three public fund related policies. The first policy will impose a special deposit insurance premium of 0.1 percent point on all insured financial institutions for 25 years, regardless of the industry. The second policy will establish settlement funds, which are transferred from the original deposit insurance fund and NPL management fund, for public funds in order to manage the public funds more efficiently. The third policy will introduce a system that recalculates the loss of public funds and the consequent burden that each of the financial sector and government must bear.
After the original deposit insurance fund is transferred to the settlement fund, a new deposit insurance fund should be established. The new deposit insurance fund should have automatic channels of borrowing up to a predetermined amount, from the government and the Bank of Korea, for situations when funds are not enough to resolve deposit insurance accidents. The deposit insurance premium needs to be lowered, considering the additional burden that insured financial institutions face in paying the special deposit insurance premium of 0.1 percent point. An acceptable level of deposit insurance funds' reserve ratio needs to be introduced in order to not only subdue the resistance from paying special deposit insurance premium but also give incentives to insured financial institutions for maintaining sound deposit insurance funds. We recommend a designated reserve ratio of 0.5% for deposit insurance funds.
공적자금 회수규모 추정 및 금융부문 상환대책(The estimation of public fund recovery and repayment plan)
[서울] : 한국금융연구원
|Series Title; No||정책조사보고서 / 2003-02|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Financial Policy|
|Holding||한국금융연구원; KDI 국제정책대학원|