Overcoming The Financial Crises
During the 1997 East Asian financial crisis, the KDIC's adoption of blanket coverage restored the public's confidence in the financial system. The integration of deposit insurers which had previously been scattered in different sectors into one organization (Apr. 1998) enabled further enhancement of public confidence. By preventing bank-runs and boosting financial competitiveness, the KDIC helped to improve foreign investors' confidence in the Korean economy and achieve an early turnaround. The KDIC's decisive response was crucial to overcoming the crisis. Also in the course of the financial restructuring which was undertaken in the wake of the crisis, the KDIC successfully resolved over 500 financial institutions and gained unique expertise in resolution. With reinforced public confidence in deposit insurance, the KDIC went into the recent global financial crisis more prepared. There was no sign of bank-runs. Only five mutual savings banks went bankrupt during 2008-2009. The KDIC decided to expand its coverage to include foreign-currency deposits and other products for additional protection. Also, the KDIC established a Contingency Plan in order to better cope with future crises.
Read more about this topic: Korea Deposit Insurance Corporation
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“Whenever reality reinforces a child’s fantasied dangers, the child will have more difficulty in overcoming them...So, while parents may not regard a spanking as a physical attack or an assault on a child’s body, the child may regard it as such, and experience it as a confirmation of his fears that grown-ups under certain circumstances can really hurt you.”
—Selma H. Fraiberg (20th century)
“One of the reforms to be carried out during the incoming administration is a change in our monetary and banking laws, so as to secure greater elasticity in the forms of currency available for trade and to prevent the limitations of law from operating to increase the embarrassment of a financial panic.”
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“I am not fooling myself with dreams of immortality, know how relative all literature is, don’t have any faith in mankind, derive enjoyment from too few things. Sometimes these crises give birth to something worth while, sometimes they simply plunge one deeper into depression, but, of course, it is all part of the same thing.”
—Stefan Zweig (18811942)