Before the outbreak of financial crisis, the Korean financial market had been inflicted with clonic inefficiencies originating from rigid entries and exits of financial institutions. The financial crisis necessitated massive exits of debt laden financial institutions and meanwhile major institutional arrangement regarding exit system of financial institutions has been made in Korea. Here exit system means a very comprehensive concept of evolutionary process of unsound financial institutions including not only the final closing but also ex-ante process such as performance evaluation, rehabilitation, prompt corrective actions, and so on.
The thesis finds that there still exits some gaps between the current practice of exit system for financial institution in Korea and best practices of western countries. Also it gives recommendation of desirable institutional exit arrangement in both basic directions and the technical detail for each categories of financial institutions.
The followings are seven basic principle of desirable exit arrangement; 1) To enhance the stability of financial system, 2) To minimize gross social cost of the exit, 3) To level the playing grounds among different categories of financial instituions, 4) To relate with the entry arrangement of financial institutions, 5) Absolutism in closing determination criteria, 6) Transparent rule in the related acts, 7) To related with the current economy-wide financial reform plan.
The technical details for each category of financial institutions should be referred from the main text.
금융기관 퇴출제도의 개선방안에 관한 연구
[서울] : 한국금융연구원
|Series Title; No||정책조사보고서 / 2000-06|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Financial Policy|
|Holding||한국금융연구원; KDI 국제정책대학원|