The purpose of this research is to establish grounds in order to improve role division in non-monetary institutions, which is appropriate for a changing financial environment. By looking into the work of Korea’s major finance institutions, banks mostly focus on short-term financing and banking related work within commercial and long-term finance area, and non-monetary institutions, which are in charge of investment banking and handle specialized tasks. The role of banks and stock companies has expanded in 1980s, though it showed relatively slow growth in 1970s, and other institutions are allowed to deal with full financing instrument.
Recent shifts in the work within the banking industry improved problems such as individual financing institution’s profit deterioration and sales decreases, which can hinder balanced development of the industry and further increase instability. If the price of financial service is limited and competition between financial institutions is accelerated where it is determined by the policy, it can lead to monopolization of the financial market. In addition, under certain conditions the failure of divided financial institutions to fully mature can hinder specialization of the financial market.
Government regulation of the financial industry can prevent insolvency of financial institutions and maintain stability of the market, and at the same time it can deteriorate effectiveness of finance as a cause of repression. Due to the development plan led by the government, effectiveness of Korea’s financial industry decreased in course of distribution and obtaining funds. In order to increase effectiveness of the finance sector, it is important to move forward with liberalization and internationalization.
Non-monetary institutions may continue to adopt the system of division of labor, yet it is desirable to limit how much individual financial institutions can handle in terms of their roles. Non-monetary institutions that are qualified, should be encouraged to work freely within the range of overseas stock. Moreover, in order to prepare for internationalization of banking and further development in the capital market, both large and small financial institutions should coexist.
제2금융권의 발전과 업무영역 조정
[서울] : 한국개발연구원
|Series Title; No||연구보고 / 85-06|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Financial Policy|
|Holding||KDI; KDI School|