This paper is concerned with financial system stability issues relating to payment and settlement systems, which constitute one of the critical components of the financial system.
The importance of the payment and settlement system has been increasingly acknowledged since non-bank financial investment companies were allowed to participate in it under the Capital Market Act of 2007. A fundamental shortcoming of this decision is that it was determined in the absence of a well established legal framework such as “a law on payment and settlement super- vision and oversight”.
This raises questions as to whether the current risk management framework for the payment and settlement system has been defined and implemented so as to ensure the system's stability and functioning. To make clear its problems and improve its stability, enacting a payment and settlement supervisory legal framework should be seriously discussed. This paper investigates the challenges involved in having investment companies take part in the payment and settlement system, and offers potential policy measures for improving the stability of the system.
지급결제기능과 금융시스템의 안정(Payment and settlement systems and the stability of the financial system in Korea)
|Series Title; No||KIF 금융리포트|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Financial Policy|
|Holding||한국금융연구원; KDI 국제정책대학원|